S&P 500, Nasdaq slip after hitting intraday records as momentum wavers

NEW YORK: The benchmark S&P 500 and the tech-heavy Nasdaq indexes retreated after hitting intraday record highs earlier on Thursday, as investors locked in gains during a data-light stretch with the US government shutdown entering a second day.

The swift pullback underscores how fragile market momentum remains, with stretched valuations and uncertainty about the Federal Reserve’s lack of visibility into economic data keeping traders on edge.

“If the shutdown is going to last longer than a few days, then you could see a little bit more volatility around equities,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

Tesla slipped nearly 2 percent after initial gains on a strong quarterly deliveries report, as some analysts flagged risks to sales in the upcoming quarters due to the withdrawal of the USD7,500 federal tax credit.

The S&P 500 healthcare sector also fell 0.4 percent, on track to break its four-day streak of gains.

Additionally, a report from global outplacement firm Challenger, Gray & Christmas said US employers announced fewer layoffs in September but hiring plans so far this year were the lowest since 2009. It came a day after a weaker-than-expected ADP National Employment Report on Wednesday. “Both are showing the job market is really drying up,” said Joe Mazzola, head trading and derivatives strategist at Charles Schwab.