The early optimism in US stock markets has faded.
The S&P 500 is down 35 points, or 0.6% with all of the selling coming in the past hour. Particularly noteworthy is the decrease in Tesla (6.8%) and Apple (-3.1%). Tesla had low sales numbers while Apple is reducing prices in China.
I don't think that tells the whole story either because there is an incentive in the US tax system to wait until after the end of the year to recognize large capital gains. That pushes the tax burden out an extra year and we saw something similar last year when Apple sank to $180 from $192 at the end of 2022.
Usually, it doesn't take long for this type of selling to fade but uncertainty about the new US administration and high valuations could control the sellers.
This article was written by Adam Button at www.forexlive.com.
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