Wall Street’s Momentum Cools Following Record-Setting Week

wall street

Today in the stock market, Wall Street’s recent surge seems to be slowing down as U.S. stocks start the week on a slightly lower note. The S&P 500 was down 0.3% in early trading, with the Dow Jones Industrial Average also dipping 0.2%, and the Nasdaq composite down 0.5% as of 9:40 a.m. Eastern time.

This pullback follows last week’s impressive performance, which marked the best of the year for the market and saw all three indexes reaching record highs on Thursday. The positive momentum came as the Federal Reserve signaled its intention to continue cutting interest rates this year, provided inflation remains under control.

Despite the recent gains, there are concerns about the market’s resilience. Chris Larkin, managing director of trading and investing at E-Trade, noted that while the market’s strength has been impressive, the lack of a significant pullback increases the likelihood of one occurring soon.

One of the notable movers in today’s market is Boeing, which is recovering some of its losses for the year with a 1.3% gain. The company, plagued by safety concerns and issues with its manufacturing quality, announced a management shakeup, including the departure of its CEO by the end of the year.

Conversely, United Airlines is weighing on the market, dropping 4.5% amid increased regulatory scrutiny following a series of recent incidents, including a jet losing a piece of its outer fuselage and another losing a tire during takeoff.

Looking ahead, this week’s key event for financial markets is expected to be Friday’s report on U.S. consumer spending, which will also provide an update on the Federal Reserve’s preferred measure of inflation. However, both the U.S. stock and bond markets will be closed on Friday for Good Friday.

Despite some recent reports of higher-than-expected inflation, the Federal Reserve appears to anticipate a continuation of the longer-term cooling trend in inflation. Traders are anticipating the Fed to begin cutting rates in June, which would provide some relief for the economy, as the Fed’s main rate has been at its highest level since 2001 for almost eight months. Higher rates typically work to reduce inflation by slowing down economic activity and lowering prices for investments.

In the bond market, Treasury yields were slightly higher, with the 10-year yield rising to 4.23% from 4.20% late Friday. In international stock markets, indexes were mostly down in both Europe and Asia.

Featured Image: Freepik @ wirestock

Please See Disclaimer

About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.