All U.S. financial markets will be closed Monday to commemorate Martin Luther King Jr. Day, giving investors time to regroup ahead of the fourth-quarter earnings season, which is expected to pick up pace after the holiday.
Following heady gains since November, U.S. stocks have sputtered in recent sessions as investors sought more clarity on President-elect Donald Trump’s policies as well as worries about elevated valuations.
“The 8%-9% gain since Election Day feels somewhat like overexuberance to most professional investors, and now with fourth-quarter earnings beginning, questions as to if a pullback or giveback have begun are creeping into these professional investors’ minds,” said Bob Pavlik, chief market strategist at Boston Private Wealth.
These concerns have bogged down the Dow Jones Industrial Average from breaching the key 20,000 mark, even as the blue chip index came within less than a point of the psychologically important level.
The Dow DJIA, -0.03% fell 5.27 points to close at 19,885.73 on Friday for a weekly loss of 0.4%. The S&P 500 SPX, +0.18% added 4.20 points, or 0.2%, to 2,274.64, falling 0.1% on the week while the Nasdaq Composite Index COMP, +0.48% rose 26.63 points, or 0.5%, to finish at 5,574.12, its sixth record in seven trading sessions. The tech-heavy index is up 1% on the week.
King was born on Jan. 15, 1929, but the federal holiday is observed on the third Monday of January each year.