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U.S. stocks end mostly flat after rally

U.S. stocks end mostly flat after rally

U.S. stocks ended mostly flat Monday, reversing early gains following a four-day winning streak that had pushed markets to 10-month highs amid hopes of a global economic recovery.
The Dow Jones Industrial Average rose 3.32 points (0.03 percent) to close at 9,509.28, paring a double-digit point gain in early trading.
The tech-heavy Nasdaq composite dipped 2.92 points (0.14 percent) to 2,017.98 while the broad-market Standard & Poor's 500 index fell 0.56 points (0.05 percent) to 1,025.57.
"Stocks today initially seemed poised to continue Friday's rally, but the euphoria faded sometime around midday," said Elizabeth Harrow of Schaeffer's Investment Research.
"Despite last week's stronger-than-expected home sales data, many analysts are now warning that benchmark economic reports have been skewed by government stimulus efforts - including the tax credit for first-time home buyers, which concludes November 30, and the "Cash for Clunkers" program, which wraps up today," she said.
Wall Street had soared Friday at the end of a four-day rally on growing evidence that the global economic recession is ending. Federal Reserve chief Ben Bernanke, in his clearest signal yet that the global recession will soon be over, said Friday that prospects for growth "appear good" despite financial market strain.
Stock analysts cautioned that the bull run could face sharp corrections, as stocks were now up some 17 percent during the last six weeks despite weak U.S. consumer confidence and rising unemployment clouding recovery prospects.
"The persistent rise in the stock market may be signaling an end to the recession or investors may be whistling past the graveyard," said Paul Nolte, director of investments at Hinsdale Associates.
"We are concerned that investor sentiment is getting bullish and valuations remain very high, but rising prices are begetting rising prices," Nolte said.
Some analysts said the investor fear of missing out on further gains had been fueling stock buying.
"We continue to have reservations about chasing stocks at this point and would urge investor caution in doing so knowing there hasn't been a lot of conviction behind the buying in recent weeks and that economic fundamentals aren't as strong as the stock market would have you believe," said Patrick O'Hare of Briefing.com.


Updated : 2021-05-18 14:07 GMT+08:00