The large S&P 500 slipped 0.1%, while the Dow Jones Industrial Average fell about 50 points, or 0.1%. The Nasdaq Composite slipped 0.1%.
Most S&P 500 stocks fell a day after the benchmark hit its 24th year-end high, with minor losses accruing in healthcare, materials, utilities, technology and communications.
A good start to the earnings season among US companies and indications of a rebound in the economy helped push stocks to a series of all-time highs. Still, some investors are cautious, pointing to the risks associated with high valuations, the potential for a surge in inflation and the epidemic raging in India.
“We have a big week of tech earnings where valuations are probably a bit tighter than in other areas,” said Stuart Rumble, chief investment officer at Fidelity International.
Among the declining stocks were Tesla shares. The electric carmaker’s share slipped 3.6% despite record first-quarter profit. Tesla shares have struggled this year amid a series of challenges, including an investigation into a Model S sedan crash earlier this month in Texas, up just 0.6% since the end of the month. month of december. Stocks remain up over 300% over the past 12 months.
General Electric slipped about 3.9% after the company’s jet engine business and divestments weighed on its quarterly results. And the profits went down at Eli Lilly,
lowering stocks by 3%.
United Parcel Service shares jumped 11% after the delivery company beat earnings and revenue expectations. Lyft,
who said on Monday he was selling his autonomous driving division to a Toyota Motor unit,
increased by 2.4%.
Some investors say stocks face a bumpy situation in the coming months, indicating signs of excess in cryptocurrencies and other corners of the financial markets.
“It may be wise to take a few chips off the table,” said Daniel Egger, chief investment officer at St. Gotthard Fund Management. Surveys showing individual investors are extremely bullish suggest stocks are vulnerable to a pullback, Egger said.
The yield on 10-year Treasuries rose to 1.583%, from 1.568% on Monday. Yields, which move inversely with bond prices, are poised to advance for a third consecutive session.
Those responsible for the Fed’s rate-setting committee are due to meet for the start of their regular policy meeting, which ends on Wednesday. Monica Defend, global head of research at Amundi, said she does not expect the central bank to adjust its monetary policy.
Ms Defend said the French asset manager is focused on earnings in the US and Europe. “We really need the real economy to support the stock market,” she said.
In overseas markets, losses in financials, autos and basic resources stocks weighed on the Stoxx Europe 600, which fell 0.2%.
Among individual European companies, shares of UBS Group fell almost 3%. The Swiss lender said it lost $ 774 million following the implosion last month of Archegos Capital Management, a bigger success than analysts expected.
In Asian markets, Japan’s Nikkei 225 ended the session down 0.5% and China’s Shanghai Composite Index closed up less than 0.1%.
-Michael Wursthorn contributed to this article.
Write to Joe Wallace at [email protected]
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