The testing of the post-March-low rally continues and experts say this is a good thing as a rally that has no checks is doomed to turn around and head south again. Wall Street has had three straight down days and this could go on for a few weeks before buyers once again see value in the market.
Concerns that the US might lose its AAA-rating worried some investors, but the smart guys think this is an excessive concern.
The Nasdaq dropped 32 points or 1.9% to 1,695.
The S&P 500 gave up15 points or 1.7% to 888.
Economic data did not help with manufacturing readings by the Fed in Philadelphia going up, but by not as much as expectations. Also jobless numbers failed to improve in line with hopes and that did not help the market.
The good news was the index of leading indicators rose 1% in April. This was the first rise since last June!
The summary is that the US is improving though not as fast as some forecasters hoped but it is getting better.
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