The Daily Guardian: S&P 500 slips to start the week as Wall Street takes a breather from record highs
The stock market saw a slight dip on Monday as major indexes retreated from record highs reached last week. The S&P 500 closed at 5,069.53, slipping from its peak, while the Nasdaq Composite and Dow Jones Industrial Average also saw declines.
Amazon made headlines as it replaced Walgreens Boots Alliance in the Dow, increasing the index’s exposure to tech and consumer retail sectors. However, Amazon shares dropped slightly by 0.15%. The change in the Dow, combined with increasing Treasury yields, added pressure on stocks.
Despite the slight downturn, investors remain cautiously optimistic about the market’s future. A recent rally fueled by strong earnings from Nvidia has boosted sentiment, but concerns linger about key economic data, including inflation numbers.
Last week’s high notes were somewhat dampened by new home sales data for January, which fell below economists’ estimates, likely due to elevated mortgage interest rates. Looking ahead, economic releases scheduled for the week include durable orders data, wholesale inventories, and consumer spending and PCE numbers.
Overall, investors are keeping a close eye on market trends and economic indicators as they navigate the uncertain territory. The AI-powered rally may continue, but with potential challenges on the horizon, caution remains the name of the game for many traders.
