Wall Street’s major indexes fell on March 4, 2019, as a disappointing U.S. construction spending report and declines in healthcare shares weighed on markets, with early optimism about a U.S.-China trade deal dissipating.
The report showed unexpected declines in December construction spending, with both private and public investment dropping, prompting economists to revise fourth-quarter growth projections downward. This followed an initial rally fueled by speculation that U.S. and Chinese leaders might finalize a trade agreement by mid-March.
The S&P 500 remained up 11% year-to-date in 2019 despite the decline, though analysts noted market expectations for a trade deal had already been priced in, leading to profit-taking. Alicia Levine of BNY Mellon Investment Management stated, "The market expects a trade deal with China, so there is a little bit of sell on the news here." She added that stocks could still rise if a deal materializes.
The healthcare sector fell 1.3% as UnitedHealth Group shares dropped 4.1%, while Purdue Pharma LP’s potential bankruptcy filing over opioid-related lawsuits pressured related companies. The Dow Jones Industrial Average closed 0.79% lower at 25,819.65, the S&P 500 fell 0.39% to 2,792.81, and the Nasdaq Composite declined 0.23% to 7,577.57.
Despite the declines, the S&P 500 closed above its session low, with materials stocks posting the strongest gain at 0.44%. AT&T shares fell 2.7% after announcing restructuring of its WarnerMedia division.
