Treasuries Stabilise Following High Demand for Bond Auction – US Market Wrap

Stocks retreated from all-time highs, with a few big techs falling, as traders waited for inflation and retail sales data to see what the Federal Reserve would do next.

Equities struggled to gain traction following a rally that defied all doomsday predictions on Wall Street. Despite the pause on Wednesday, the S&P 500 has gone the longest period without a 2% drop since 2018.

The S&P 500 fell to around 5,165, while the tech-heavy Nasdaq 100 underperformed. Tesla led the decline in megacap stocks following an analyst downgrade. United States Steel fell 13% following reports that US President Joe Biden intends to express serious concerns about the proposed takeover by Nippon Steel.

Treasuries stabilised after a 30-year bond auction drew strong demand, in contrast to the 10-year note sale on Tuesday. Bitcoin reached $73,000.

Scepticism grew in the face of a sharp rally in US stocks, with the S&P 500 up in 16 of the previous 19 weeks.

The S&P 500’s earnings increased 7.4% in the fourth quarter compared to the same period last year. Profits in the index fell 1.7% excluding the Magnificent Seven group of technology giants.