Stocks’ torrid postelection rally petered out this week, as both the S&P 500 and Nasdaq Composite were headed for their worst weekly showing since an early September selloff.
That’s in stark contrast with last week, when stocks tallied their strongest stretch of the year after President-elect Donald Trump prevailed over Vice President Kamala Harris in the U.S. presidential election.
Strategists blamed the weakness on rising Treasury yields and concerns that the Fed might hold off on another rate cut in December, although a jump in yields earlier in the session has since reversed. Profit-taking following such a strong rally was also likely a factor, they said.
Stocks touched their lowest levels of the session in early-afternoon trading, with the Dow down nearly 400 points. They have since moved a touch higher, although the blue-chip index was still down 314 points, or 0.7%, on the day at 43,429.
Meanwhile, the S&P 500 and Nasdaq Composite were headed for their worst week since Sept. 6, according to Dow Jones Market Data.
The S&P 500 was down 82 points, or 1.4%, at 5,866 in recent trade, while the Nasdaq Composite was off by 460 points, or 2.4%, at 43,556. The tech-heavy index was on track for its worst trading session since Halloween.
The Dow was sitting on a weekly loss of 1.4% in recent trade, according to Dow Jones Market Data, while the S&P 500 and Nasdaq were down 2.1% and 3.1%, respectively.
Small-cap stocks have also taken it on the chin, with the Russell 2000 down nearly 4% on the week, reversing some of its 8.6% gain from the prior week.
Mike DeStefano contributed reporting