The benchmark S&P 500 edged lower on Tuesday, as investors paused in the wake of a rally buoyed by hopes of a trade deal between the US and China that sent the three main US stock indexes to record highs in the previous session.
While there was growing optimism over a deal, investors have also shown caution, pushing up value stocks over growth names over the past few sessions. The Russell 1000 value index has climbed nearly 2 per cent over the past three sessions compared to a gain of 0.8 per cent for the Russell 1000 growth index. Keeping some tentativeness intact, China is pushing President Donald Trump to remove more tariffs as part of the ‘phase one’ deal, which may be signed this month, according to latest reports.
Financials, a big weight for value stocks, rose 0.42 per cent as benchmark US Treasury yields hit a six-week high and energy, gained 0.45 per cent as oil climbed more than 1 per cent as the best performing S&P sectors. The rate-sensitive real estate sector dropped 1.76 per cent.
The Dow Jones Industrial Average rose 30.52 points, or 0.11 per cent, to 27,492.63, the S&P 500 lost 3.65 points, or 0.12 per cent, to 3,074.62 and the Nasdaq Composite added 1.48 points, or 0.02 per cent, to 8,434.68. The S&P 500 and the Nasdaq closed at record highs for a second session on Monday, while the Dow hit a record high for the first time since July.Morning-Market-Note-Tuesday-6th-November