U.S. Stocks Dip at Start of Shortened Trading Week
U.S. stocks opened the week on a slightly lower note, with the S&P 500 down 0.3% in early trading on Monday. The Dow Jones Industrial Average was also down 0.2%, while the Nasdaq composite saw a 0.5% decline.
The market is taking a breather after last week’s strong performance, which saw all three indexes reaching record highs on Thursday. The Federal Reserve’s indication of potential interest rate cuts this year has been a driving force behind the recent market rally.
Despite the ongoing positive momentum, some analysts are cautious about a possible pullback in the near future. Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, noted that while the market has been strong, a correction could be on the horizon.
Boeing, which has been facing safety and manufacturing quality concerns, saw a slight rebound with a 1.3% increase in its stock price. The company announced a management shakeup, including the departure of its CEO by the end of the year.
On the flip side, United Airlines weighed on the market with a 4.5% loss. The company is facing increased regulatory scrutiny following recent incidents, including a piece of the outer fuselage falling off a jet and a plane losing a tire during takeoff.
Looking ahead, investors are awaiting Friday’s report on U.S. consumer spending and inflation data. However, the markets will be closed on Good Friday, limiting trading activity for the week.
In global markets, indexes in Europe and Asia were mostly lower, reflecting the cautious sentiment in the U.S. market.
Overall, the market remains optimistic about potential rate cuts by the Federal Reserve, which could provide relief to the economy. Treasury yields were slightly higher on Monday, with the 10-year yield rising to 4.23% from 4.20% late Friday.
AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.
