Early optimism on US stock markets has faded.

The S&P 500 is down 35 points, or 0.6% with all selling in the last hour. The declines of Tesla (6.8%) and Apple (-3.1%) are particularly noticeable. Tesla had weak sales figures as Apple cuts prices in China.

I don’t think that tells the whole story with either because there is an incentive in the US tax system to wait until the end of the year to recognize large capital gains. That increases the tax burden for an extra year and we saw something similar last year when Apple sank to $180 from $192 at the end of 2022.

Usually, it doesn’t take long for this type of selling to disappear, but uncertainty surrounding the new US administration and high valuations could keep sellers in check.

This article was written by Adam Button at www.forexlive.com.



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