U.S. stocks close lower as post-election rally cools

NEW YORK, Nov. 12 (Xinhua) — U.S. stocks ended lower on Tuesday, as post-election rally cooled with the U.S. dollar gaining ground against all major currencies.
The Dow Jones Industrial Average fell 382.15 points, or 0.86 percent, to 43,910.98. The S&P 500 sank 17.36 points, or 0.29 percent, to 5,983.99. The Nasdaq Composite Index shed 17.36 points, or 0.09 percent, to 19,281.4.
Eight of the 11 primary S&P 500 sectors ended in red, with materials and health leading the laggards by losing 1.57 percent and 1.34 percent, respectively. Meanwhile, communication services and technology led the gainers by going up 0.51 percent and 0.45 percent, respectively.
Rising government bond yields paused a strong stock rally that had recently driven major indexes to record highs. Boeing weighed on the Dow, dropping over 2.5 percent after sharp declines in October attributed to worker strikes. Both the S&P 500 and Dow posted their steepest losses since Oct. 31.
Statistics showed that U.S. ten-year Treasury yield increased by 13 basis points and ended at 4.44 percent on Tuesday.
With the Dow Jones going up over 18 percent so far in 2024, the post-election momentum appears to be cooling as investors assess whether stocks are nearing overbought territory. This pause reflects a cautious approach to equity valuations amid robust market gains this year.
“What’s driving today’s trade is maybe a little bit of exhaustion,” Siebert chief investment officer Mark Malek told CNBC on Tuesday. “We’re all concerned about debt and deficits. The deficit is always a problem when it’s a problem, but right now the market views it as a problem. It may be a reason to take your foot off the gas when the market already has a bit of indigestion.”
Attention now shifts to Wednesday’s consumer price index report for October, which investors will scrutinize for signs of cooling inflation, aligning with the Federal Reserve’s objectives. ■