U.S. equities and stock exchange traded funds are taking a breather after optimism over a stronger economy helped propel U.S. markets to records.
The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.2% lower Friday as traders engaged in the time-honored tradition of profit taking.
“We see expensive valuations and slightly exuberant sentiment, which is making us take a little step back and sell some equities,” Wouter Sturkenboom, multiasset investment strategist at Russell Investments, told the Wall Street Journal.
Ever since President Donald Trump promised to announce tax reforms in the weeks ahead, U.S. markets jumped to new record highs, with banks in the financial sector largely outperforming.