(Bloomberg) — Stocks struggled to make headway, following a furious post-election rally that prompted calls for a breather amid signs of buyer fatigue.
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Stocks have fluctuated near all-time highs, with the S&P 500 remaining near technically overbought levels. This is after the rise that led to the benchmark index rising by 25% this year. Several measures highlight traders’ strong optimism, including the latest numbers from the American Association of Individual Investors, which showed a rise in bullish sentiment last week.
“The stock market is showing signs of becoming tired,” said Matt Maley of Miller Tabak + Co. “It may be due for some decline soon — which would actually be normal and healthy.”
Just hours before Jerome Powell’s speech on Thursday, traders waded through the economic data. U.S. producer prices rose in October, driven in part by gains in portfolio management and other categories that fuel the Fed’s preferred measure of inflation. Jobless claims fell to their lowest level since May.
“The question we have is whether Powell’s dovish policy will reset the tone for higher long-term interest rates. “On that question alone, we say no for now,” noted Andrew Brenner of NatAlliance Securities. “But he will continue to support Fed easing in the long run.” “In the near future, even that will have limited impact.”
The S&P 500 was little changed. Most major corporate stocks fell, while banks rose. Cisco Systems Inc stock fell. By 1.2% based on a conservative annual forecast. Walt Disney Co. stock jumped 10% on the earnings beat. The Nasdaq 100 index fell 0.2%. The Dow Jones Industrial Average fluctuated.
10-year Treasury yields fell three basis points to 4.42%. The Bloomberg Dollar Spot Index rose 0.1%.
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