U.S. stocks declined Friday, signaling a muted end to a strong week on Wall Street as investors awaited data on how the economy performed at the start of 2021.
The Dow Jones Industrial Average fell 181 points, or 0.5%, shortly after the opening bell. The S&P 500 slipped 0.4%, backing away from Thursday’s record, and the Nasdaq Composite lost 0.3%.
Markets appeared to be pausing after rallying for much of January, with money managers saying there was no clear catalyst for the decline. Investors have been cheered in recent days by a solid start to earnings season, though some are concerned that high valuations in corners of the market will leave stocks vulnerable in the coming months.
“With a lack of new ammunition, people are simply stopping off,” said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management.
Investors are cautious of adding new positions ahead of the Federal Reserve’s decision on monetary policy and earnings from major companies including Facebook , Apple and Tesla next week, he added.
