The S&P 500 fell for a third consecutive session on Tuesday, sliding 0.28% to close at 5,203.58. The Nasdaq Composite also lost 0.42%, finishing at 16,315.70, while the Dow Jones Industrial Average inched down by 0.08% to settle at 39,282.33. This marked a cooling off from the previous week, when all three indexes closed at record highs and the Dow approached the 40,000 level. Despite the overall decline, there were some stocks that saw gains on Tuesday, including Tesla which gained nearly 3% and Seagate Technology which rose about 7.4% after an upgrade at Morgan Stanley. Krispy Kreme also rallied 39% after announcing an expansion of its partnership with McDonald’s.
According to Tom Hainlin, senior investment strategist at U.S. Bank Asset Management, the market is broadening out and bringing in more cyclical sectors. This is supported by data suggesting that the economy is still in good shape, even though inflation remains positive and above target. Economic data released on Tuesday was mixed, showing stronger-than-expected orders for durable goods but waning consumer confidence. Despite this, investors remain cautiously optimistic about the overall economic outlook.
Ross Mayfield, investment strategy analyst at Baird, noted that it would be a relatively quiet shortened week to wrap up the month, as investors wait for the latest personal consumption expenditure and labor market openings readings. The major averages are on track for their fifth straight winning month, with the S&P 500 up more than 2% in March. The Nasdaq Composite is also up 1.4% for the period, while the Dow has gained 0.7%. Overall, the market remains positive despite recent fluctuations and mixed economic data.
The day’s market action reflected a cooling off from last week’s record highs, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all seeing declines. Despite this, some individual stocks saw gains, including Tesla, Seagate Technology, and Krispy Kreme. These gains were attributed to optimism about the economy and certain sectors, such as technology and consumer goods. However, economic data released on Tuesday was mixed, with stronger durable goods orders but waning consumer confidence, adding to the uncertainty in the market.
Investors are largely lying in wait for upcoming economic readings, including the personal consumption expenditure and labor market openings reports. Despite the overall decline in the market, the major averages are still on track for their fifth straight winning month, with gains in the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average. While there may be some short-term volatility, the overall outlook remains positive, supported by strong economic data and optimism about the broader market.
Overall, while the market may have cooled off slightly from last week’s highs, there are still positive indicators, such as gains in certain sectors and a positive economic outlook. Despite concerns about inflation and consumer confidence, investors remain cautiously optimistic about the market’s prospects. With the upcoming economic reports and potential for further market fluctuations, it will be important for investors to continue monitoring the situation and adjusting their strategies accordingly.
