US Stocks Fall After Dow’s Rally to 14,000
U.S. stocks backed off their breathless rally Monday, falling sharply in the first trading session after major indexes soared to post-financial crisis highs.
The Dow Jones industrial average fell as much as 116 points in the first half-hour of trading. It was down 88 points at 13,921 as of 9:55 a.m. Eastern time.
The Standard & Poor’s 500 index dropped eight points to 1,505. The Nasdaq composite index fell 10 to 3,168.
The declines followed a surge Friday that pushed the Dow over 14,000 for the first time since 2007, before the financial meltdown that routed world markets.
Friday was only the tenth time in its history that the Dow closed above 14,000. The first was in July 2007; the rest were in October of that year. The index closed Friday just 155 points shy of its record high, set that October.
The rally was powered by strong economic data, including a January jobs report that showed the labor is market strengthening gradually. The Institute for Supply Management reported a big jump in its index of manufacturing activity.
The Dow is up more than 6 percent this year. Yet Wall Street’s celebratory mood was a distant memory by Monday, as U.S. stocks followed European markets lower. France’s CAC-40 was down 1.6 percent, Germany’s DAX 1.5 percent.