It was a struggle time for the US stocks market when the Dow Jones industrial average and the S&P 500 fell on Tuesday after making a run at new highs. Meanwhile, the Nasdaq advanced as a result of gains in biotech shares.
The Dow Jones industrial average and the S&P 500 were both down in the afternoon as earlier gains from economic data faded. The Nasdaq remained up above water i.e. up about 0.3 percent.
Market watchers said that the US stock market witnessed the mixed trading after a measure of consumer sentiment rose to the highest level since January 2008.
Suggesting that Americans are optimistic about the economy, the Conference Board’s index of consumer confidence surged to 85.2 in May from 82.2 in April.
Market analysts say the economy also seen a positive outlook on the housing front. The prices of home nationwide continued to surge in April.
“The new home sales data and consumer confidence were very, very strong. The market is not rallying in a big way, but given the run we’ve had that’s not surprising,” said Randy Frederick, a managing director at the Schwab Center for Financial Research.
According to the analysts, the investors and consumer confidence surged more than expected in June, giving clear indications about the improving economy and its growth trajectory.
“The market obviously responded well to the good economic data earlier – the housing data and of course, the consumer confidence. But the market is basically in a standstill here. I kind of suspect this is what we are going to see as the quarter comes to a draw,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.