U.S. stocks slipped Monday, dragged down by losses across everything from technology shares to retail stocks. A string of blue-chip companies are scheduled to report earnings this week and will offer a view on businesses’ expectations for the pace of economic revival. Money managers are looking to gauge whether stocks’ high valuations are justified after the Dow and S&P 500 hit closing records last week.
The Dow Jones Industrial Average closed above 34000 for the first time Thursday after strong earnings and upbeat economic data sent stocks climbing. The S&P 500 also notched a record close, its 22nd of the year. A powerful rally has pushed both indexes up 11% in 2021, and many investors believe the rollout of Covid-19 vaccines and plentiful government spending mean stocks have room to keep rising.
Nasdaq futures moved above the 14000 level in the pre-market hours for the first time ever, however, they got immediately rejected and dropped below it by the time market opened. The index continued to drop for the entire trading session finishing the day at the session lows.
The Dow Jones Industrial Average wobbled Tuesday as investors tried to gauge the impact of a halt in the rollout of Johnson & Johnson’s Covid-19 vaccines and an uptick in inflation. At the same time, the tech heavy Nasdaq closed at the new all time highs.
The S&P500 index has been steadily moving higher since November 2020 Presidential Elections. Its advance has accelerated during the last two weeks. How high can the index go before the next 8%-10% pullback?