Wall Street takes a breather after this week’s monster rally

Posted on May 21, 2020

Dow Jones Industrial Average futures traded 127 points lower, or 0.5%. S&P 500 and Nasdaq 100 futures dropped 0.5% and 0.4%, respectively.

MGM Resorts, Ross Stores and Under Armour — all stocks that benefit from the economy reopening — in the premarket Thursday. Best Buy also dropped 2% despite better-than-expected earnings.

Thursday’s pullback followed sharp rallies in the major stock indexes so far this week.

The Nasdaq Composite and S&P 500 both extended week-to-date gains during Wednesday’s regular trading session and finished the day up 2% and 1.6% respectively. The broad S&P 500 closed at its highest level since March 6 on Wednesday afternoon.

The Dow, meanwhile, finished Wednesday’s up 369 points, or 1.5%, as Apple, Disney and McDonald’s all added at least 30 points to the blue-chip index amid a surge in reopening optimism.

The S&P 500, Nasdaq Composite and Dow are up 3.7%, 4% and 3.7% since Monday. The S&P 500 and Dow are both on track for their best weeks since the week ended April 8.

Popular consumer internet names including Facebook and Amazon both clinched new all-time highs on Wednesday as investors cheered the former’s new e-commerce venture and the latter’s continued success in delivering goods to Americans during the Covid-19 outbreak.