US stocks retreat as major indices take a breather

US stocks fall on Tuesday as major indices took a breather following their postelection rally.

The Dow Jones Industrial Average dropped 382.15 points, or 0.86 per cent, to 43,910.98, while the S&P 500 slipped 0.29 per cent, closing at 5,983.99. The Nasdaq Composite ended the session slightly lower, falling 0.09 per cent to 19,281.40. Both the Nasdaq and the S&P 500 snapped five-day win streaks.

Key components of the so-called "Trump trade" were among the day's biggest losers. Small-cap stocks, often seen as beneficiaries of a potential return to the White House by Donald Trump, faced broad pressure, with the Russell 2000 declining by about 1.8 per cent.

Only three sectors of the S&P 500 managed to close in the green. Communication Services was the best performer, gaining 0.51 per cent, while Materials lagged, dropping 1.57 per cent.

Tesla shares, which had surged roughly 31 per cent since Election Day, tumbled more than 6 per cent on Tuesday. Meanwhile, shares of Trump Media & Technology Group fell nearly 9 per cent, bringing the stock down 10 per cent since Trump's victory.

In other company news, Amgen shares dropped 7.1 per cent following reports that its obesity drug caused a loss of bone mineral density. On the other hand, Shopify shares soared 21 per cent after the e-commerce platform posted a third-quarter operating income of $283 million, up from $122 million in the same period last year.

Looking ahead, market participants will focus on upcoming consumer and producer price index reports later this week. These inflation readings come just after the Federal Reserve announced another interest rate cut.

Looking ahead to today's trading on the ASX, futures are down 1 per cent.

Several key Australian companies are set to release earnings today including Aristocrat Leisure, Commonwealth Bank of Australia and James Hardie.

Currency

One Australian dollar at 8.30am was buying 65.32 US cents.

Commodities

Gold has lost 0.47 per cent. Silver has added 0.86 per cent. Copper has fallen 2.02 per cent. Oil was flat.

Figures around the globe

European markets closed lower. London’s FTSE fell 1.22 per cent, Frankfurt dropped 2.13 per cent, and Paris closed 2.69 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei fell 0.40 per cent , while Hong Kong’s Hang Seng dropped 2.84 per cent and China’s Shanghai Composite lost 1.39 per cent.

Yesterday, the Australian share market closed 0.13 per cent lower at 8256.

Ex-Dividend
ANZ Group Holdings (ASX:ANZ) is paying 83 cents 70 per cent franked

Dividends payable
Harvey Norman Holdings Ltd (ASX:HVN_

Sources: Bloomberg, FactSet, IRESS, CNBC, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
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