Stocks little changed in US
Interest rate concerns stifled Wall Street’s attempt to extend its rally today, even as the market drew support from upbeat reports on factory orders, housing demand and consumer confidence.
Positive economic data stoked the market at the opening, but those gains were limited by a bond sell-off as traders grew worried that a strengthening economy would give the Federal Reserve reason to continue its rate-tightening campaign.
“I think the picture that’s emerging is that the economy is doing pretty well, and that energy prices have rolled over sooner than expected,” said Robert Tipp, chief investment strategist for Prudential Fixed Income.
“We’re basically not seeing the slowdown people were looking for. They’re hoping the Fed will stop the rate-hike cycle sooner.”
On Monday, the market ended a seven-day winning streak amid a five-week rally that has carried the Standard & Poor’s 500 and the Nasdaq composite indexes to four-year highs. But many analysts say the market is overbought and needed a break following November’s gains.
The Dow Jones industrial average lost 2.56, or 0.02%, to 10,888.16, after gaining almost 70 points early in the session.
Broader stock indicators finished mixed. The S&P 500 was up 0.02 at 1,257.48, while the Nasdaq fell 6.66, or 0.3 percent, to 2,232.71.
