On Tuesday, Wall Street encountered a marginal downturn from its recent record-breaking highs, marking its third successive session of modest declines since reaching an all-time peak.
The S&P 500 index, a broad measure of U.S. stock performance, witnessed a decrease of 0.3%, equivalent to a decline of 14.61 points, ultimately settling at 5,203.58 by day’s end. Similarly, the Dow Jones industrial average, composed of 30 major U.S. companies, experienced a slight dip of 0.1%, or 31.31 points, closing at 39,282.33. Meanwhile, the Nasdaq composite index, known for its heavy representation of technology stocks, fell by 0.4%, or 68.77 points, concluding the trading session at 16,315.70.
Initially, the market saw some positive momentum driven by several major tech stocks. Notably, Tesla saw a 2.9% increase in its stock price, while Alphabet, the parent company of Google, recorded a modest uptick of 0.4%. However, a late-day slide in Nvidia shares, down by 2.6%, contributed to the overall decline in market indices.
While large-cap stocks initially led the way, the day also witnessed notable movements among smaller companies. Krispy Kreme, for instance, experienced an impressive surge of 39.4% following the announcement of a partnership deal with McDonald’s to distribute its doughnuts nationwide. Similarly, McCormick, a leading player in spices and seasonings, reported a remarkable 10.5% increase in its stock price after delivering stronger-than-anticipated profits for the latest quarter and projecting robust sales growth for the remainder of the year.
Another significant mover in the market was Trump Media & Technology Group, which soared by 16.1% on its first day of trading under the new ticker symbol “DJT.” This surge was fueled by enthusiasm surrounding former President Trump’s latest presidential bid. However, concerns have been raised regarding the company’s stock price, which many analysts believe has surpassed reasonable valuation levels. This skepticism is amplified by the financial performance of its flagship asset, Truth Social, which continues to incur losses while facing stiff competition from larger industry rivals.
Criticism has also been directed at the broader U.S. stock market for its lofty valuation levels. Despite ongoing concerns, the S&P 500 has managed to post a substantial 9% increase since the beginning of the year and is poised to conclude its fifth consecutive month of gains. Investor optimism persists, bolstered by the resilience of the U.S. economy, as well as expectations of interest rate cuts by the Federal Reserve amid signs of moderating inflation.
In the bond market, Treasury yields experienced a slight decline following mixed economic reports. While durable goods orders showed an increase in February, consumer confidence unexpectedly decreased, underscoring lingering uncertainties about the economic recovery.
Overall, global stock markets demonstrated modest gains, with indexes in Europe and Asia mostly edging higher.