The roaring rally in US stocks lost steam on Tuesday as investors assessed whether buying has been overdone and what Donald Trump’s Cabinet picks mean for policy.
The Dow Jones Industrial Average (^DJI) slid about 0.4%, or nearly 200 points while the S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) both fell roughly 0.2%.
The breather in equities came as Treasury yields ticked higher. The 10-year Treasury yield (^TNX) added about 8 basis points to hit nearly 4.39%.
Wall Street analysts are signaling that the post-election surge in stocks could soon sputter after lifting the major gauges to record highs. Investors have raised their exposure to US stocks to an 11-year high, Bank of America found, and those bullish bets lay the ground for profit taking, Citi strategists said.
At the same time, the market is pondering the policy impact of Trump’s likely Cabinet picks….
