U.S. stocks held steady on Tuesday as the market’s blistering rally in February took a pause.
The Dow Jones Industrials squeezed higher 0.94 points higher to 31,386.70
The S&P 500 sank 1.91 points to 3,913.68.
The NASDAQ Composite added to its all-time record, 34.65 points to 14,022.29.
Facebook and Netflix rose more than 1% each, while Microsoft and Alphabet also traded in the green.
Investors could be taking some chips off the table following a strong rally boosted by optimism for a smooth reopening amid the COVID vaccine rollout. Cyclical sectors, which had outperformed in recent weeks, led the declines. Energy fell 2.4%, paring its month-to-date gains to 10%. Financials dipped 0.5% after rallying more than 7% this month.
However, Bank of America said a market correction could be on the horizon as the recent runup has shown signs of overheating, but it will be a buying opportunity for equity investors.
Lawmakers in Washington appear to be moving closer to another economic relief bill. House Democrats on Monday unveiled the details of a relief proposal that included $1,400 direct cheques with faster phase-outs than previous bills. Many believe additional stimulus could help drive the stock market higher
Prices for 10-Year Treasurys regained ground, lowering yields to 1.15% from Monday’s 1.18%. Treasury prices and yields move in opposite directions.
Oil prices regained 35 cents to $58.32 U.S. a barrel.
Gold prices gained $4.60 to $1,838.80 U.S. an ounce.