Economy

S&P, Nasdaq little changed; Dow dragged down by Nike

S&P, Nasdaq little changed; Dow dragged down by Nike

Wall Street suffered its worst day this year as investors fretted about whether President Donald Trump will be able to deliver promised tax cuts.

The CBOE Volatility index, Wall Street's "fear gauge", jumped 10 per cent.

"The market really wants to believe in the new administration", he said.

The S&P 500 declined the most in one session in five months and closed 29 points lower at 2,344. (We have only scratched the surface of the retail carnage that will occur if the border tax indeed makes an appearance in the final tax reform plan.) In addition, oil was down pretty sharply yesterday (about 2%), which didn't help matters.

Apple gained $1.58, or 1.1 percent, to $141.42 and Microsoft rose 82 cents, or 1.3 percent, to $65.03 while chipmaker Nvidia added $2.16, or 2 percent, to $108.07. "Stocks are down, and bonds are reacting to that", said Lou Brien, a market strategist at DRW Trading in Chicago.

The S&P 500 added 0.2 percent to 2,348 at 4 p.m.in NY and the Dow Jones Industrial Average lost 7 points to 20,661.30.

Bank stocks enjoyed especially sharp rises and the dollar rallied hard too, but in the last few weeks moves have become more muted.

The Russell 2000 index of small-cap stocks was down 2.7 percent, its worst day since September.

Family in hilarious BBC interview video speaks out
Kelly also returned Tuesday to the BBC , to chat with presenter James Menendez about their original exchange and its aftermath. As the interview began, the couple's 4-year-old daughter Marion jumped up and down at the sight of her father on the screen.

The financial sector has been the best performing of the 11 major S&P sectors since Trump's election, surging 18 per cent on his proposals to cut bank regulations and reduce taxes.

The fall in equities also coincided with the release of an investor survey by Bank of America Merrill Lynch, which showed that investors now see global stocks as being at their most expensive in 17 years.

The tech-heavy Nasdaq Composite Index was outperforming other benchmarks, up 22 points, or 0.4%, at 5,816. The S&P 500 is trading at almost 18 times expected earnings, compared with a 10-year average of 14, according to Thomson Reuters Datastream.

Advancing issues outnumbered declining ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.33-to-1 ratio favored decliners.

The S&P 500 posted 27 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 78 new highs and 79 new lows.

The S&P 500 and the Dow ended lower after FBI Director James Comey told a congressional hearing he had seen no evidence to support a claim by Trump that former President Barack Obama had wiretapped his campaign headquarters in Trump Tower in NY.

About 8.3 billion shares changed hands in US exchanges, compared with the 7.1 billion daily average over the last 20 sessions.