NEW YORK – Shares of banks and some prominent technology companies fell on Thursday (Dec 29) as US stock markets finished slightly lower following another sleepy holiday session.
Bank of America, Citigroup and Goldman Sachs all saw their share prices drop one percent or more, while Amazon dipped 0.9 percent at Tesla Motors 2.3 percent.
The Dow Jones Industrial Average shed 13.90 points (0.07 per cent) to 19,819.78, retreating further from a charge at the 20,000-point milestone, a landmark that now seems less attainable by year end.
The broad-based S&P 500 slipped 0.66 points (0.03 per cent) to 2,249.26, while the tech-rich Nasdaq Composite Index dropped 6.47 points (0.12 per cent) to 5,432.09.
Analysts attributed the weakness in stocks in part to a rejiggering of assets in the wake of a post-election rally that lifted the market to repeat records in December.
“Stocks have done very well and there is a reallocation out of the winning asset, which is stocks, into the asset which has not done as well, which is bonds,” said Nicholas Colas, chief market strategies at Convergex, a New York brokerage firm.
Markets largely shrugged off the Obama administration’s move to slap sanctions on Russia over its hacking of Democratic Party interests ahead of the US presidential election.
Barrick Gold and Newmont Mining each gained more than 7.0 per cent. Gold prices, which have been under pressure since the US elections, have rallied over the last few days.
Despite Thursday’s decline, the S&P 500 is up about 10 per cent for 2016 with one trading day left to go in the year.
Analysts vary in their appraisal of the outlook for 2017, with some predicting additional gains for stocks and others warning the market could be in for a retreat if President-elect Donald Trump fails to deliver major policy changes.