US: Stocks retreat after November rally
WALL Street stocks sagged on Monday (Dec 4), pausing after a buoyant November ahead of key US employment data later in the week.
After a strong run, “today is a post-recovery rest”, said CFRA Research’s Sam Stovall, who predicts markets will notch further gains later in December in keeping with seasonal trends.
November’s advance was propelled by expectations that the Federal Reserve will hold off on additional interest rate increases due to the pullback in inflation.
Traders overwhelmingly expect the Fed to hold rates steady at a policy meeting next week, but analysts said Monday’s rise in US Treasury yields acted as a damper on equity purchases.
The Dow Jones Industrial Average slipped 0.1 per cent to 36,204.44.
The broad-based S&P 500 dropped 0.5 per cent to 4,569.78, while the tech-rich Nasdaq Composite Index fell 0.8 per cent to 14,185.49.
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Among individual companies, Hawaiian Airlines parent Hawaiian Holdings surged more than 190 per cent after it agreed to be acquired by Alaska Airlines for US$1.9 billion.
Alaska Air Group fell 14.2 per cent.
Uber Technologies had a good day, climbing 2.2 per cent after S&P Dow Jones Indices announced the ride-hailing company will soon join the widely-traded S&P 500.
Virgin Galactic dropped 18 per cent following a report that founder Richard Branson does not plan further investment in the space company.
Spotify jumped 7.5 per cent after the music streaming service announced it would reduce its number of employees by around 17 per cent, in a bid to cut costs amid “dramatically” slower economic growth. AFP
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