“There’s a fair amount of uncertainty about how the Obamacare redo will play out…and the market really hates uncertainty,” Timothy Anderson, managing director at brokerage MND Partners, told the WSJ.
The energy sector was also putting pressure on the markets, with Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy ETF, down 0.6% on falling crude oil prices. Energy traders continue to be wary of high production and concerned about pledged cuts that may not be enough to stymie the global glut.
Nevertheless, traders remain optimistic on the whole as the Federal Reserve’s recent rate hike and more cautious monetary policy tone reflected an expanding U.S. economy.
“The largest economy in the world is performing very well…but the Fed has clearly signaled they’re not going to rush,” Christopher Dyer, director of global equity at Eaton Vance, told the WSJ. “That’s very conducive for global equity markets and the global economy.”
For more information on the markets and U.S. Stock ETFs, visit our S&P 500 category.