NEW YORK (AP) — U.S. stock indexes slowly rebounded Tuesday, cutting some of their value. great profit this year.
The S&P 500 fell 0.5% in early trading, but is still close to its all-time high reached earlier this month. As of 9:35 a.m. ET, the Dow Jones Industrial Average was down 188 points, or 0.4%, and the Nasdaq Composite Index was down 0.6% from the previous day. A record was set the day before..
Nvidia, superstar stocks That's been a big reason Wall Street has broken records this year, weighing on the market with a 2.9% drop. It was his eighth loss in the past nine days and is down more than 10% from last month's record as his rocket ship momentum slows.
Like the broader U.S. market, Nvidia's stock price has risen so much that commentators are warning that expectations are too high and that the stock will only make sense if everything goes right from here.
In a survey of fund managers around the world, Bank of America strategists found that many are investing in U.S. stocks and drawing down cash to do so. The study found that fund managers are holding significantly lower amounts of cash in their overall portfolios, similar to 2002 and 2011, which were tough times for risky investments.
The survey's broadest measure of optimism, based on economic growth expectations and other indicators, is the highest since August 2021, strategist Michael Hartnett said in a report from BofA Global Research.
The S&P 500 index is on track for one of its best years since the millennium, and expectations are rising as the U.S. economy remains remarkably resilient. President-elect Donald Trump Policy will boost growth, but inflation will not be as bad, so the Federal Reserve has begun to ease the situation by lowering interest rates from 20-year highs.
The Fed is widely expected to: Announce third cut It will be cut to a key rate on Wednesday, and officials are also expected to release their forecasts for the direction of interest rates over the next few years.
However, expectations for future reductions are on a downward trend. inflation The Fed is likely to become even more adamant about delaying the final steps toward its 2% goal.
According to a report on Tuesday, Sales at U.S. retail stores increased further This could indicate that the economy does not need further support from low interest rates.
In the bond market, U.S. Treasury yields remained relatively stable following this report. The yield on the 10-year U.S. Treasury note fell slightly to 4.39% from 4.40% late Monday. The yield on the two-year Treasury note, which more accurately reflects expectations for the Fed, remained at 4.25% as of late Monday.
