US stocks slip from record highs amid new sell-off in Archegos-linked stocks
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- US stocks slipped Tuesday after the Dow and S&P 500 hit record highs the previous day.
- New trades linked to Archegos added unease to markets after US data highlighted an economic rebound.
- Credit Suisse disclosed a $4.7 billion hit after the Archegos Capital meltdown.
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US stocks dipped slightly at the open Tuesday as the rally that drove the S&P 500 and Dow to record highs stalled amid new block trades related to the fallout of Archegos Capital Management.
ViacomCBS fell 2% in premarket trading and Credit Suisse warned it expects to suffer a $4.6 billion charge to its first-quarter profits partially related to the forced liquidation of its holdings last month triggered by Archegos.
The S&P 500 and Dow hit record highs Monday in the wake of a better-than-expected jobs report and record-high expansion in the services sector last month. Optimism around the economic recovery continues to drive markets.
"The fundamental backdrop continues to improve as the U.S. economy reopens with unprecedented fiscal and monetary policy support," said Craig Johnson, Piper Sandler chief market technician. "The pace of coronavirus inoculation has also provided building hope for a return to normalcy and also offset concerns over new outbreaks emerging around the globe. Rates are rising as investors reprice the prospect for future growth and inflation. However, we do not believe they have transitioned into material headwinds for stocks at this juncture."
Here's where US indexes stood at the 9:30 a.m. ET open on Tuesday:
- S&P 500: 4,070.58, down 0.18%
- Dow Jones industrial average: 33,465.80, down 0.18% (61.39 points)
- Nasdaq composite: 13,687.41, up 0.12%
Oil prices rose after falling sharply on Monday over fears of rising supply from the OPEC group of producers and higher Iranian output, as well as uncertain demand due to rising COVID-19 cases around the world.
West Texas Intermediate crude climbed 2%, to $59.75 per barrel. Brent crude, oil's international benchmark, rose 1.6% to $63.13 a barrel.
Gold rose 0.5%, to $1,737.60 per ounce.
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