The recent stock market rally is quickly coming to a close as the Dow and S&P 500 are on track for their worst one-day declines in three months, according to a MarketWatch article by Anora Mahmudova and Victor Reklaitis.
From the article:
U.S. stocks slumped Thursday as investors appeared disappointed by a lack of policy detail in President-elect Donald Trump’s first formal news conference Wednesday.“The Trump rally has exhausted itself, and it’s natural to see a pullback after a strong advance,” said Joe Saluzzi, partner, co-head of Equity Trading at Themis Trading. “Investors are probably repositioning and getting ready to hear from companies as earnings season begins.”
It was only a week ago that the Dow flirted extremely close to the 20,000 psychological milestone.
And up until Trump’s press conference yesterday, the Dow, which is an indicator of economic health, was edging closer and closer to 20,000. The Dow monitors the values of shares at the 30 largest companies in America. As those companies perform better economically, so does the nation, at least in theory.