The benchmark averages were trading in negative territory with lower oil prices and lingering concerns about over-valuations putting the brakes on a ten-day rally in the Dow. For the week, the Dow was positioned to close higher for a third straight week, while the S&P 500 should extend its winning streak to week five. Losses for the Nasdaq will result in a lower close after four weeks higher.
Investor’s appetite for equities started to wane on Thursday after Treasury Secretary Steven Mnuchin indicated that tax cuts and regulation reforms would take longer than Wall Street had priced in. The dearth of details on pro-growth initiatives coupled with nose-bleed levels in the major indices encouraged investors to cash in on recent profits ahead of the weekend.
Additionally, oil prices receded with global benchmark Brent crude down 0.85% recently and U.S. benchmark West Texas Intermediate down 0.77% after official data showed U.S. crude stockpiles increased for a seventh consecutive week.