Stocks defy valuation worries, closing at record
For all the talk about inflated equity prices, a peak in earnings growth and the spread of a highly infectious coronavirus strain, stocks managed to close at another record.
In what some traders called a boring trading session, the S&P 500 eked out a gain of less than 0.1%. The benchmark gauge of American shares also remained on track for its fifth straight monthly advance -- the longest run since August. Technology and retail companies rose, while financials underperformed even after some of the largest Wall Street banks boosted payouts to shareholders.
Investors have been weighing possible risks to the rally that drove equities up more than 90% from last year's lows amid expectations that this quarter will mark the peak of a profit recovery from the depths of the pandemic. BlackRock Investment Institute strategists are dialing down their excitement for U.S. stocks, saying that potentially higher taxes and more regulations could pose "challenges" to the market.
"Investors are probably taking a minute to reassess their near-term outlook," said Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors. "With momentum fading, stocks likely need a meaningful catalyst from here."
These are some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 4 p.m. EDT
The Nasdaq 100 rose 0.3%
The Dow Jones industrial average was little changed
The MSCI World index was little changed
Currencies
The Bloomberg Dollar Spot Index rose 0.2%
The euro fell 0.2% to $1.1900
The British pound fell 0.2% to $1.3850
The Japanese yen was little changed at 110.55 per dollar
Bonds
The yield on 10-year Treasurys was little changed at 1.47%
Germany's 10-year yield advanced two basis points to -0.17%
Britain's 10-year yield advanced two basis points to 0.74%
Commodities
West Texas Intermediate crude rose 0.7% to $73.40 a barrel
Gold futures fell 1.1% to $1,761.40 an ounce
