S&P 500 Drops After Post-Election Rally, Dow Slips 200 Points: Live Updates
On Tuesday, the S&P 500 declined, set to end a four-day streak that pushed stocks to new record highs following the U.S. presidential election. The broad market index fell 0.1%, while the Nasdaq Composite was down 0.08%. The Dow Jones Industrial Average dropped 167 points, or 0.3%.
Key sectors associated with the “Trump trade” were among the biggest losers. Small-cap stocks, considered potential beneficiaries of Trump’s second term, faced broad pressure, with the Russell 2000 sliding nearly 2%. Tesla, which had surged 31% since Election Day, fell roughly 6%, while Trump Media & Technology Group dipped more than 7%, leaving it down 9% since Trump’s win.
According to Siebert’s chief investment officer Mark Malek, stocks may have initially surged too fast in anticipation of Trump’s return. With the election uncertainty resolved, deeper economic concerns are re-emerging. “Today’s market action might reflect a bit of exhaustion,” Malek told CNBC. “Debt and deficits remain major issues. The market is acknowledging these concerns, which might prompt investors to ease back on their positions.”
Looking ahead, market participants await consumer and producer price index reports due later this week, following the Federal Reserve’s recent interest rate cut. Tuesday’s pullback came after the Dow hit a historic close above 44,000 and the S&P 500 surpassed 6,000. Recent trading has shown optimism around Trump’s potential to implement tax cuts and ease regulations, factors that could stimulate the broader market.
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