Markets today: 'priced for perfection' U.S. stocks see rally stall
BNN Bloomberg
Stock traders decided to take some chips off the table at the start of a week that will bring the Federal Reserve’s preferred inflation measure — on a day when markets will be closed.
Equities pulled back after a rally that drove the S&P 500 to multiple records, spurring speculation the market has gone too far, too fast. Investors also took a cautious stance on bets the personal consumption expenditures price index — due on Good Friday — will show inflation probably remained uncomfortably high. On that same day, Jerome Powell is due to speak.
A sense of prudence also prevailed as concern about a disconnect between earnings expectations and share prices have grown. Morgan Stanley and JPMorgan Chase & Co. strategists were the latest to warn it’ll be hard to justify lofty valuations if profit acceleration fails to materialize.
“We continue to see sentiment as stretched and think a U.S. equity market pullback is overdue,” said Lori Calvasina at RBC Capital Markets.
