RCI.B:CC - Profit-Taking Takes over Indexes Mid-Week
Stocks tumbled on Wednesday as investors cashed in some profits following the market's recent hot streak, and FedEx dragged the S&P 500 lower.
The Dow Jones Industrials weakened 475.72 points, or 1.3%, to close Wednesday at 37,082.70.
The S&P 500 dropped 70.02 points, or 1.5%, to 4,698.35.
The NASDAQ flopped 225.28 points, or 1.5%, to 14,777.94. Both the NASDAQ and the Dow had been on pace for their 10th straight day of gains.
FedEx was the biggest laggard in the S&P 500, losing more than 10%. The package delivery giant issued a disappointing revenue outlook for the fiscal year, and reported fiscal second-quarter results that fell short of expectations on the top and bottom lines. The Dow Jones Transportation Average, a price-weighted index of 20 stocks that includes FedEx, fell by 138 points, or 0.9%.
Google-parent Alphabet was among the best performers in the S&P 500, reaching a new 52-week high; it last gained more than 2%.
The pullback comes after a robust session Tuesday when the Dow and the NASDAQ Composite both notched a nine-day advance. Since the Oct. 27 closing low, the Dow Industrials climbed 15.9%, and the S&P 500 jumped 15.8%.
All three major averages remain on pace for a winning December and 2023 as investors look forward to proposed rate cuts from the Federal Reserve in the new year.
The S&P 500 has risen more than 3% this month and more than 22% year to date, while the Dow has added more than 3% and 12%, respectively. The NASDAQ is up by more than 4% for December and 41% for 2023, putting it on pace for its best year since 2020.
Prices for the 10-year Treasury jumped, lowering yields to 3.86% from Tuesday's 3.93%. Treasury prices and yields move in opposite directions.
Oil prices eased back 16 cents to $73.78 U.S. a barrel.
Gold prices recovered eight dollars at $2,044.10.