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.

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