US stocks edge lower as investors consolidate after string of records

NEW YORK: Wall Street stocks opened lower on Wednesday, with equities taking a breather after hitting one record high after another in recent weeks, and increased pessimism around the chances of peace in the US-Israel war on Iran.

The Dow Jones Industrial Average dropped 0.3 percent to 51,133.36 points, while the broad-based S&P 500 Index shed 0.3 percent to 7,587.32.

The tech-heavy Nasdaq Composite Index lost 0.5 percent to 26,971.68.

Adam Sarhan of 50 Park Investments said markets were adjusting after a “huge rally” led by tech stocks.

“We had a huge rally, tech has been leading the way up. It’s perfectly normal and healthy to see the market consolidate after a big move up,” he said.

He said US equity markets remained in a “very bullish environment, specifically for tech and AI.”

Employment in the US private sector grew more than expected in May, payroll firm ADP said Wednesday, with hiring seen across a range of industries.

“The market is a mirror of the economy, even with high inflation and energy prices, as long as people have jobs, we still have a very strong economy,” he said.

Fighting erupted in the Middle East again on Wednesday, with an Iranian drone strike on a passenger terminal in US ally Kuwait’s international airport killing one person and wounding 63 more.

The attacks marked one of the more severe tests yet of a fragile April 8 ceasefire that has largely held despite sporadic strikes.

Oil rose on Wednesday, with Brent crude trading up 1.3 percent at $97.26 a barrel, and its US equivalent WTI up 1.4 percent at $95.06.