The S&P 500 erases income and finally ends up slightly decrease on the day when the market rally falters
US stocks erased previous gains and ended Tuesday’s session lower as the market battled for direction.
The S&P 500 fell 0.2% to 4,188.13, dragged down by the energy sector. The tech-heavy Nasdaq Composite ended the day flat at 13,657.17. The Dow Jones Industrial Average fell 81.52 points, or 0.2%, to 34,312.46 after rising more than 100 points on its session high.
Big tech stocks Apple and Netflix both erased an earlier advance and fell into negative territory. Amazon stocks came under pressure after Washington, DC Attorney General Karl Racine said he was suing the e-commerce giant on antitrust grounds. He claimed Amazon’s practices wrongly raised prices for consumers and stifled innovation. But stocks eventually rose 0.4% that day.
Airlines and cruise lines supported the broader market. United Airlines rose 1.5% after the airline announced that returns on domestic leisure cards purchased that month had exceeded 2019 levels when it reopened. Boeing also gained 1.4%. Norwegian Cruise Line and Royal Caribbean each gained more than 3%.
“The market is basically on hold until the next big event. This is the Fed’s rejuvenation plan (or not the rejuvenation plan),” Tom Essaye, founder of Sevens Report, said in a note. “Until we have more clarity about the Fed’s rejuvenation and the longer-term inflation outlook, we should expect this kind of incremental volatility.”
Bitcoin’s recent price, which hit tech stocks like Tesla and hurt general investor sentiment, stabilized on Monday. The cryptocurrency was back near $ 37,600 on Tuesday after falling below $ 32,000 at a point on Sunday. Crypto prices rebounded when Elon Musk said he had conversations with Bitcoin miners about sustainability.
Tesla, a large Bitcoin holder, fell 0.3%. Crypto-Exchange Coinbase was up 7.6%, with shares also receiving a boost from a call to buy from JPMorgan.
Key averages rose on Monday, led by tech stocks and companies benefiting from a strong reopening of the pandemic as Covid cases fell to their lowest level since June.
Monday “was driven by relief from fears of inflation,” Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. “Signs that inflation fears in bond and commodity markets were easing drove the stock market late last week and have continued to this day.”
“Growth stocks, including technology, have regained leadership as fears of returns and inflation ease,” added Paulsen.
After winning on Monday, the S & P 500 is now in the green for the month of May. The S&P 500 is only about 1% down from its record hit earlier this month before a pullback.
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