Home / Business and Economy / Dow, S&P 500 Slip After Record Highs; Nasdaq Edges Up
Dow, S&P 500 Slip After Record Highs; Nasdaq Edges Up
8 Jan
Summary
- Dow and S&P 500 declined after reaching new record highs.
- Google's market cap briefly surpassed Apple's for the first time since 2019.
- Venezuela to ship oil to the U.S., impacting crude prices.
The Dow Industrials and S&P 500 experienced a downturn on Wednesday, concluding the regular session in negative territory even after touching unprecedented record levels earlier in the day. The tech-focused Nasdaq Composite, however, managed a slight increase, primarily driven by a notable surge in Alphabet, the parent company of Google. This rally allowed Google's market capitalization to surpass that of Apple for the first time in several years.
Simultaneously, crude oil prices experienced a decline following President Donald Trump's announcement that interim authorities in Venezuela would release up to 50 million barrels of oil to the United States. This development raised concerns about a potential increase in global oil supply. In response, shares of major U.S. oil refining companies, Valero Energy and Marathon Petroleum, saw gains.
Market analysts suggest that while geopolitical events can cause short-term volatility, markets tend to revert to fundamental drivers like profits and valuations. This "buy the dip" mentality, coupled with anticipated Federal Reserve rate cuts and normalizing valuations, suggests underlying strength. However, investors remain cautious about potential volatility from upcoming Supreme Court opinions on tariffs.
