US equities (SP 500) ended slightly lower on Tuesday as investors suspended pushing up the market after three major indexes hit a record high in the previous session, boosted by hopes of a trade deal between the US and China.
Despite growing optimism about a deal, investors have also shown caution, pushing up value stocks over the past few trading days rather than growth stocks. The Russell 1000 value index rose nearly 2% in the past three sessions, while the Russell 1000 growth index rose 0.8%.
Some uncertainties remain. According to the latest report, China is urging President trump to lift more tariffs as part of the "first phase" agreement. The agreement is likely to be signed this month.
"The market is at an all-time high and people are a little uneasy about this agreement," said Tim Ghriskey, chief investment strategist at Inverness counsel.
"It's definitely to turn to value stocks, but more to financial stocks, because interest rates are going up; the market is also turning to energy stocks, because commodity prices are going up, and these two sectors were absolutely hit by the market before, so the valuation is very cheap."
The heavyweight financial sector in the value sector rose 0.42% as US Treasury yields hit a six week high. Energy stocks rose 0.45% to become the best performing S & P stocks as oil prices climbed more than 1%. The interest rate sensitive real estate sector fell 1.76%.
The Dow Jones industrial average. DJI rose 30.52 points, or 0.11 percent, to 27492.63. The S & P 500 index. SPX fell 3.65 points, or 0.12 percent, to 3074.62. The NASDAQ. Ixic rose 1.48 points, or 0.02 percent, to 8434.68.
Hot Model No.: