S&P 500 Posts Longest Losing Streak in A Month | Closing Bell

Comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.

Stocks fell as valuation worries overshadowed data showing the economy is holding up. The figures didn’t have much of an impact on Federal Reserve bets, but short-dated yields climbed. Bitcoin sank.

Following a series of all-time highs, the S&P 500 dropped for a third straight session, the longest slide in a month. That’s despite data showing US gross domestic product grew at the fastest pace in nearly two years.

An over $15 trillion surge in equities from this year’s lows came on speculation that the economy is not sinking and the market will be bolstered by improving corporate profits and the artificial-intelligence boom.

As a result, the S&P 500’s 12-month forward price-to-earnings ratio recently touched a high of 22.9, a level that this century was exceeded in just two prior instances: the dot-com bust and the pandemic rally in the summer of 2020 when the Fed reduced rates to near zero.

While the central bank’s focus has tilted toward the jobs market, traders will be closely watching Friday’s inflation report.

The S&P 500 fell 0.5%, with most major groups down. Two-year yields climbed six basis points to 3.66%. The dollar rose. The crypto slump intensified ahead of a $22 billion options expiry.

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