Market Turbulence: S&P 500 and Nasdaq Retreat After Record Highs
The S&P 500 and Nasdaq receded from record highs due to investor profit-taking amid a U.S. government shutdown. Concerns over prolonged volatility in equities and shifts in job market conditions added pressure, resulting in mixed performances across various sectors.
The benchmark S&P 500 and the tech-focused Nasdaq saw a retreat after reaching intraday record highs earlier on Thursday. This setback came as investors sought to secure profits amid a period lacking significant data, all while the U.S. government shutdown continued into its second day.
Concerns arose over potential prolonged volatility in the equity markets, with Ameriprise Financial's chief market strategist, Anthony Saglimbene, warning of increased fluctuations if the shutdown extends beyond a few days.
Adding to market pressures, U.S. employment reports revealed a tightening job market, with expectations of reduced hiring activities this year, the lowest since 2009, according to Challenger, Gray & Christmas. This, coupled with varying sector performances, underscored the fragility in market momentum.
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