Major US stock indices fell from record levels on Monday as investors sought cues from the first-quarter earnings report to justify a rich valuation of equities, while Tesla shares fell after a fatal car crash.
The electric-car manufacturer was down 3.5% after a Tesla vehicle believed to be operating without anyone in the driver’s seat crashed into a tree Saturday night north of Houston, killing two people .
The stock was the biggest pressure on the S&P 500 and Nasdaq due to a sharp drop in bitcoin over the weekend.
Coca-Cola grew 1% in the quarter, when the beverage maker crushed quarterly profit and revenue estimates, easing the epidemic and broadening vaccine rollout.
IBM Corp, another blue-chip company, slipped about 0.2% from its results after the market closed.
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“The market is booming, so a little rest is needed,” said Peter Cardillo, chief market economist at New York’s Spartan Capital Securities.
“So far it is taking a slight advantage as traders await results from big tech names on Wall Street.”
A recent stretch in 14-month highs benchmark 10-year bond yields has led to increased interest in richly priced technology stocks, while a string of strong economic data pushed the S&P 500 and the Dow to record levels have helped.
The S&P 500 has been growing for the past four weeks, its longest winning streak since August 2020.
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According to data from Refinitiv IBES, about 79 S&P 500 companies are due to report earnings this week, including Johnson & Johnson, Netflix Inc, Intel Corp, Honeywell and Shalmberger.
Analysts now expect first-quarter earnings for the S&P 500 firms to grow 25% from the previous year.
Nine out of 11 major S&P sectors fell, while defensive consumer staples and real estate were in positive territory.
EDT Dow Jones Industrial Average fell 149.99 points or 0.44% to 34,051.05 at 11:37 am, the S&P 500 lost 21.88 points or 0.52% to 4,163.59 and the Nasdaid Composite was down 153.28 points or 1.09% to close at 13,899.06.
Gametop Corp jumped 6.7% on the announcement of the resignation of its CEO.
Crypto shares, including miners and stock marathon digital, fell nearly 11% when they took bitcoin as a form of bitcoin.
