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S&P 500 dips, ending historic streak

By
Brooks Hays
The S&P 500's streak of 161 days without a closing loss of more than 1 percent ended on March 21, 2017. Photo by John Angelillo/UPI
The S&P 500's streak of 161 days without a closing loss of more than 1 percent ended on March 21, 2017. Photo by John Angelillo/UPI | License Photo

March 21 (UPI) -- An historic streak is over. The S&P 500 closed down 1.2 percent on Tuesday after 161 days without a daily drop of more than 1 percent at any point. The market spent 64 consecutive days without a decline of more than 1 percent at any time during the trading sessions.

An early morning sell-off in financial stocks triggered a wider decline. The Dow ended Tuesday off 1.14 percent, while the Nasdaq dropped 1.83 percent on the day.

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Goldman Sachs stock ended the day down 3.7 percent, and Bank of America stock declined 5.8 percent. JPMorgan Chase shares dipped 2.9 percent.

The streak included historic highs for the both the Dow and S&P. Investor confidence soared despite political volatility as President Donald Trump moved into the White House.

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Until Tuesday, investors appeared confident in the American economy. Many believe that confidence will continue and that the tax cuts Trump has promised, along with future infrastructure spending and regulatory rollbacks, will boost a steadily growing economy.

"This will be the first time since the mid-1960s that the federal government may provide a positive impulse to an economy that is at full employment," Bob Miller, a senior bond investor at BlackRock, told The New York Times.

Some investment advisors blamed Tuesday's slide on the hostile response to the GOP healthcare reform bill -- a sign Trump's agenda could continue to face problems on Capitol Hill.

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Others suggest the market could simply be reaching its limit, with disparities between stock values and corporate earnings nearing record highs.

"This would be the ninth straight year that the S.&P. finishes the year higher than the year before," said Charlie Bilello, research director at the investment consulting firm Pension Partners. "And if you combine that with very high valuations, it means that investors should expect more volatility going forward."

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