Wall Street dropped after the Standard & Poor’s 500 Index hit a record high at the close of trading for the seventh time in eight sessions as investors assessed equity valuations.
EBay Inc. lost 2.3% after announcing David Marcus will relinquish position as the chief of its PayPal business to join Facebook Inc. Facebook soared 4% to the highest point since March. RadioShack Corp lost 11% after posting a larger loss for the last quarter. Molson Coors Brewing Co. added 1.9% after revealing dates for launch of new games.
The S&P 500 tumbled 0.2% to 1,947.53 as of 1:31 pm in New York. The Dow Jones Industrial Average plummeted 0.1% or 17.40 points to 16, 925.70. Shares traded in the S&P 500 gauge were 6.3% below the average for the past 30 days at that particular time of the day.
“It shouldn’t be a shock to anyone that we’re seeing softness after a blistering recovery. This is a temporary reprieve from a market that’s being seeing highs. By no measure does this mean we’re going to get a bear market correction, but a 5 percent move down at any given point in time shouldn’t come as a surprise to anyone,” Chad Morganlander of Florham Park, New Jersey-based Stifel Nicolaus & Co told Bloomberg by phone.
The Chicago Board Options Exchange Volatility Index dropped 0.1% to 11.14.
According to the New York Times, the commonly referred to as momentum stocks, which are synonymous with substantial growth rates and valuation concerns, were among Tuesday’s top performers. Netflix soared 2.3%.
Investors keep tracking volumes traded, which have been lower than average lately, potentially exposing stock markets to substantial volatility.
Achillion Pharmaceuticals jumped 51% in massive trading, extending a jump of nearly 48% on Monday. Receptos shares added 35.4%. Chico’s FAS gained 8.7% after reports emerged suggesting the firm was considering a sale to a private equity.
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