US stocks fell on Tuesday as Wall Street halted an almost unstoppable move.
The Standard & Poor's 500 index fell 37.96 points, or 0.7%, to 5,205.81 points, its worst day in four weeks. This is the second consecutive decline after recording an all-time high to close last week.
Other indicators performed worse. The Dow Jones Industrial Average lost 396.61 points, or 1%, to close at 39,170.24, also moving away from its record. The Nasdaq Composite Index fell 156.38 points, or 1%, to 16,240.45 points, and small stocks in the Russell 2000 Index fell 1.8%.
Health insurers led the market lower on concerns about their upcoming profits after the US government announced lower-than-expected rates for Medicare Advantage. Humana shares fell 13.4%. Meanwhile, Tesla stock fell 4.9% after delivering fewer vehicles at the start of 2024 than analysts expected.
One of the main reasons the US stock market has been rising since late October is the expectation that the Federal Reserve will cut interest rates several times this year. The central bank itself has hinted at this, and easing interest rates would ease pressure on both the economy and the financial system.
Choi writes for the Associated Press.
