US stocks dropped, retreating from gains that have pushed the Nasdaq Composite above 5000 the first time in around 15 years.
Soft auto sales increased doubts about the US economy, and the dollar dropped from an 11-year peak against the basket of currencies.
According to The Wall Street Journal, the Dow Jones Industrial Average dropped 0.5% or 85.26 points to 18,203.37 while the S&P 500 Index dropped 0.45% or 9.61 points to 2,107.78. The Nasdaq Composite Index dropped to 4,979.90.
Traders said the decline was to be expected since it came a day after the S&P 500 and the Dow closed at record highs and the Nasdaq Composite hit above 5000 for the first time since March 2000.
Ted Weisberg, president of Seaport Securities Corp said, “We’re at all-time highs with the popular averages, so it’s a natural pullback.”
Reuters quoted Art Hogan, chief market strategist at Wunderlich Securities as having said, “The air gets a little thin up at new highs and you need a driver to keep it going., and one of the things we are not getting as a driver today is solid auto sales.”
Investors will get several readings on the labor market this week. The release of February jobs report, scheduled Friday, is expected to show an additional 240,000 new jobs according to analysts.
The Nikkei of Tokyo dropped 0.6% as traders booked gains that propelled the index to highs of 15 years on Monday.
The pan-European FTSEurofirst 300 index dropped 0.98% to 1,545.35, below the seven-year high it hit on Monday.
The MSCI world equity index, which tracks shares in 45 nations, dropped 0.5% to 431.16.
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