The stock market ended its best winning streak in more than two years on Tuesday, retreating from record highs as corporate earnings season ended and investors heaved a sigh of relief ahead of an upcoming report on inflation.
The Dow Jones Industrial Average fell 0.31%, up more than 100 points, while the S&P 500 fell 0.35% and the tech heavy Nasdaq Composite fell 0.6%.
Before Tuesday’s drop, the S&P 500 had posted eight consecutive days of gains — its best streak in two years — and closed above 4,700 for the first time.
While strong corporate earnings helped spur stocks to new highs and fueled optimism around the economy’s reopening, that effect has waned somewhat as some companies have yet to report results.
Investors took some profits after the latest stock market surge and are now awaiting key inflation data that will be released on Wednesday, with the October consumer price index expected to rise 0.6% over the previous month.
Meanwhile, shares of Tesla fell 12% on Tuesday – after CEO Elon Musk’s shares continued to tumble over the weekend amid concerns that he would sell his 10% stake in the electric vehicle maker.
Shares of digital payments company PayPal sank more than 10% after weak earnings, while industrial giant GE saw shares rise 2.6% after announcing it would split into three public companies focused on aviation, healthcare and energy. Will be