U.S. stocks inched lower Friday, with the main benchmarks on track to post weekly and monthly gains.
Advances in May sent the S&P 500 to record levels above 1,900, while both the Nasdaq Composite and Dow Jones Industrial Average turned positive for the year.
The S&P 500 SPX +0.04% hit a record intraday high in early trading. The benchmark index was down about 2 points to 1,918.49 but was on track for a 0.9% weekly gain and 1.8% gain in May.
The Dow Jones Industrial AverageDJIA -0.02% fell 30 points, or 0.2%, to 16,668.98. The blue-chip index was set for gains 0.4% for the week and 0.5% for the month.
The Nasdaq Composite COMP -0.33% fell 16 points, or 0.4%, to 4,231.97. The tech-heavy index eyed a 1% gain for the week and 2.8% gain in May.
Kristina Hooper, U.S. investment strategist at Allianz Global Investors, said today’s cautious mood in the market is colored by how low the 10-year Treasury yields are.
“Many investors are struggling to understand why 10-year yields are below 2.5% and whether they are signaling something they don’t know. While historically such low rates signal a weakening economy, we think there are other reasons behind it, such as lower supply and attractiveness compared to other safe government bonds,” Hooper said.
“We believe the environment for stocks is still good, as rates are low and inflation is low. Tapering of the QE appears fully priced in and all eyes are on the Fed funds rate,” she added.
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Source: Market Watch