US stocks trade mixed amid investor uncertainty
The Dow Jones Industrial Average has cheered up market participants after settling at a new all-time high. Rapid growth in energy prices amid an extreme winter weather in the United States has boosted the index. Unlike the Dow, the Nasdaq Composite is incurring losses. Mixed trading of the major stocks came due to the heightened feeling of uncertainty among investors. Currently, it is hard to predict the future of the American and global economy. All this is weighing on the key indices. Amid mounting concerns, even the S&P 500 has been fluctuating in a very narrow range. Investors have taken a wait-and-see stance and no longer want to buy risk assets.
"We're in the early stages of a business and market cycle, and so the worry is whether it's getting too hot too quickly and whether the Federal Reserve will make a move," Brian Levitt, global market strategist at Invesco, comments on the current stock market situation.
The paradox of what is now happening is that, on the one hand, there are enough positive factors such as growing consumer demand, high corporate incomes, and a large-scale stimulus plan. On the other hand, there is great uncertainty about the overvalued market and future prospects for the economy. All the market should do is decide which side to take.