Stocks in the United States culminated December 22 preholiday session with some losses. The Nasdaq Composite and Standard & Poor 500 booked their maiden successive losses in recent times. Investors showed reluctance to bid higher prices for indexes which are near their all-time highs. The “Trump rally” seems to have lost momentum over past few sessions.
Stock markets down
The S&P 500 closed 0.2 percent or 4.22 points lower to touch 2,260.96. It is only 11 points low than the peak highs seen during the first week of December. Seven of the 11 principal sectors of the S&P 500 closed in the red. The biggest loser are the consumer discretionary stocks. They culiminated about one percent lower. The DJIA or Dow Jones Industrial Average finished 0.1 percent or 23.08 points down at 19,918.88. This index of blue chip stocks had struggled to touch 20,000- the psychologically important level. Nasdaq- the tech company studded went down by 0.4 percent or 24.01 points to 5,447.42. Even then, the level was near its December 20 set record.
It has been an excellent year for stocks. The Dow went up by about 18 percent. The S&P 500 is expected to give a return of 11 percent and the Nasdaq is estimated to give a nine percent advance. About five trading sessions remain until 2016 ends. These gains are much better than what the Wall Street pundits had forecasted. There were estimations low gains amounting to single digits. The year saw one of the worst stock market beginnings in history.
However, the recent pullback of the market could be a sign that investors of Wall Street are reassessing pro-business proposals made by Donald Trump, the now President-Elect of the United States. The stock market cheered his victory by staging a long rally. Analysts have however warned that any signs of delays in the implementation and consequent execution of fiscal policies like infrastructure building, tax cuts and de-regulation as pledged by Trump will have the consequence of steep pullbacks.
Wall Street, however, have high hopes when it comes to the imminent Trump administration. According to Kate Warne of Edward Jones, an investment company, stocks may go up even higher in 2017. She said Trump could proceed in deregulation without the support of Congress. It is expected that the stocks will move higher, but may go down if the promised changes do not quickly materialize.