U.S. stocks pared losses triggered by a retreat in megacap tech shares, as investors evaluated the resilience of the global recovery amid a record spike in coronavirus cases.
After the S&P 500’s 69th record close on Monday, the benchmark was little changed, slipping less than 0.1% in the last hour of trading. The Nasdaq 100 retreated on turnarounds in four-day rallies for the likes of Nvidia Corp., Apple Inc. and Alphabet Inc. Still, the Dow Jones Industrial Average stayed in the green thanks to reopening beneficiaries such as Walt Disney Co. and Boeing Co.
Trading was choppy as moves were exaggerated by thin volumes, with shares changing hands in the major benchmarks about a third below daily averages for the past 30 days. Max Gokhman, chief investment officer at AlphaTrAI, attributed today’s reversal to gravity.
“The bump we saw on Monday didn’t have a clear catalyst, so we’re giving some of that back today,” he said. “I don’t think today’s pullback portends further declines, but this week’s seasonally low volume mixed with unseasonably higher volatility at the individual stock level means that one errant headline could give us a significant move in either direction as we get into the last stretch of 2021.”
