On Tuesday, stocks pulled back again as major indexes were on pace to complete a multiday run. What was the reason? Investors are worried over the lessening of progress from the Trump administration with regard to the increased tension between the United States and North Korea.
Volume of trading was also lower as investors came back from the long holiday weekend. This also added to the lower numbers on Wall Street. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all lost gains on Tuesday.
“People are getting a little more nervous on the margin—not just the geopolitical stuff—over whether tax reforms and pro-business policies will get done,” said Ian Winer, head of the equities division at Wedbush Securities.
Many analysts are saying that valuations are expensinve right now, however that does not necessarily mean that the market is due for a massive retreat. Many assume that there will be something to see in the short term but investors are cautioned to keep an eye on the markets. The situation with North Korea and the United States isn’t helping. Pyongyang had a successful test of its largest nuclear bomb ever. They said they would be ready to launch a new intercontinental ballistic missile as soon as this coming Saturday.
Factory orders for July have also been seen as a negative. These numbers fell over three percent. This, of course could be a contributing factor to the Fed’s future decisions on rate policy. Furthermore, stronger than expected economic growth but weaker than forecast labor market data may also become a sticking point.