Wall Street indices closed lower for a third consecutive session as healthcare and energy stocks declined, prompting profit-taking amid a market pause following a strong年初 rally.
Investors shifted focus to potential trade negotiations between the U.S. and China, along with key economic indicators like the upcoming employment report, as corporate earnings season concluded. The S&P 500 has gained about 11% this year due to optimism over a possible trade deal and expectations of reduced Federal Reserve interest rate hikes, though recent gains have slowed.
David Joy, chief market strategist at Ameriprise Financial, noted, "In the absence of positive catalysts, it’s easy to take profits." He added, "Today’s price action doesn’t signal a trend but reflects a three-week sideways market movement."
The Dow Jones Industrial Average fell 88.05 points to 25,718.58, the S&P 500 dropped 11.71 points to 2,777.94, and the Nasdaq Composite declined 47.71 points to 7,528.65. The S&P 500 healthcare sector fell 1.4%, with Pfizer down 2.5% and Amgen declining 3.0%.
The resignation of FDA Commissioner Scott Gottlieb on March 1 raised concerns about regulatory clarity for biotech firms, compounding existing uncertainties over healthcare legislation. The energy sector also dropped 1.4% as U.S. crude prices fell and Exxon Mobil shares declined 1.6% following production expansion plans.
General Electric shares fell 7.6% after its CEO warned of negative industrial cash flow this year. The Federal Reserve’s Beige Book report highlighted slowing global growth and the impact of the 35-day government shutdown on early 2019 economic activity, though labor markets remained tight.
On the NYSE, declining issues outpaced advancing ones 2.71-to-1, while the Nasdaq saw a 3.13-to-1 ratio of decliners. The S&P 500 recorded 13 new 52-week highs and 5 new lows, compared to the Nasdaq’s 20 new highs and 27 new lows.
