WU - US Stocks Brace For Another Day In The Red As Rally Loses Steam: Analyst Sees Market Pullback On This Indicator | Benzinga
U.S. stocks are poised for another day of weakness, although some positive tech earnings may provide a modest lift to the sector. The market appears to be digesting information following a rally that began after the early January downturn. According to a recent report from FactSet, estimated earnings growth for S&P 500 companies has turned upward as more companies report earnings beats by a wide margin. Additionally, speeches from Federal Reserve officials scheduled for the day could influence trading.
Cues From Monday's Trading:
Major indices paused on Monday due to concerns about overbought levels, prompting caution among investors. Federal Reserve commentary suggested that the central bank may refrain from cutting rates until evidence of a sustained downtrend in inflation emerges.
The Institute of Supply Management’s service sector reading added to concerns about delayed rate cuts from the Fed. The survey showed “economy growing solidly in early 2024 and prices rising, further reducing odds of a March rate cut,” said Comerica Chief Economist Bill Adams.
Indices opened lower and extended losses in early trading before rebounding from lows later in the morning. However, they still ended the day down, with both the S&P 500 Index and the Dow Industrials retreating from record levels.
All sectors, except healthcare stocks, experienced declines, with material, utility, and real estate stocks particularly affected by the sell-off.
US Index Performance On Monday
Index Performance ...