U.S. stocks fell on Tuesday, as the S&P 500 retreated after hitting its seventh consecutive record closing high last week.
The S&P slipped 0.4% in morning trading, signaling a potential halt to the index’s longest running record-setting streak since 1997.
The Dow Jones Industrial Average fell 1.1%, or 390 points, while the Nasdaq Composite retreated less than 0.1%. U.S. markets were closed Monday for the Independence Day holiday.
U.S. stock indexes have ground higher in recent weeks, lifted by signs of the economy rebounding and the labor market recovering. Inflation concerns have also eased, and major central banks have signaled that they will leave accommodative monetary policies in place for now. Investors say they are now looking for fresh catalysts, such as strong corporate earnings reports or more fiscal stimulus, to power the next leg of the rally in stocks.
“It just may be time for a little bit of a breather or a pause in the pace of equity market returns,” said Chris Dyer, director of global equities at Eaton Vance. “A lot of the good news is priced in and I think that makes it a little bit more tricky for the equity markets to grind higher in the short term.”
