On Wall Street on Tuesday, the stock index fell from record levels as investors were cautious before the start of the company’s quarterly earnings season.
The Dow Jones Index fell 96 points, or 0.29%, to 33,430 points, while the S&P 500 Index fell 0.10% to 4,073 points, and the Nasdaq Index fell 0.05% to 13,698 points.
On Monday, due to better-than-expected economic indicators, the Dow Jones and Standard & Poor’s 500 indexes hit record highs.
But on Tuesday, they fell slightly from these levels due to the cautious attitude of investors before the start of the company’s business report season for the first quarter of this year.
Analysts surveyed by Reuters estimated that the revenue of S&P 500 companies increased by 24% in the last quarter over the same period last year.
“A big question that we do not yet have an answer to is the current degree of economic openness. Stock prices reflect people’s expectations that the economy will return to normal sooner than previously expected, but it is not clear where we are currently headed.” Vice President Stephen Massocca (Stephen Massocca) said.
Investors expect that the recovery of the world’s largest economy from the coronal crisis will accelerate due to the implementation of large-scale fiscal and monetary stimulus measures.
Therefore, in recent weeks, the share prices of cyclical industries that are most sensitive to economic development, such as energy, industry, and mining, have risen more strongly.
However, the technology industry is also very stable. After experiencing strong growth last year, it has lagged behind in terms of growth this year.
With the acceleration of the covid-19 vaccination process in the United States, investors hope that social and economic life will return to normal as soon as possible, and the US$2 trillion infrastructure investment plan recently announced by President Joe Biden should further promote economic growth.
But some investors worry that huge fiscal and monetary measures may increase inflation, and the authorities may raise taxes to fund all these incentives.
On the European Stock Exchange, stock prices rose yesterday. The London FTSE index rose 1.28% to 6,823 points, while the Frankfurt DAX index rose 0.70% to a record high of 15,212 points, and the Paris CAC rose 0.47% to 6,131 points.