Daily chart of the comprehensive S&P 500 depicts a glaring bear candle, also the first 1-day percentage decline above 1.0% since October 2016, capturing the market’s attention. A breakdown of the sectors within the S&P 500 could perhaps best explain the situation as one would find the prime Trump-rally beneficiaries, including the financial, material and industrial sectors, leading losses. Specifically, the financial sector appear to be finding duo pressure from the Trump rally unwinding and dovish Fed discussions.
A slide of 2.87% for the financial sector on Tuesday makes it the worst 1-day percentage performance since the UK referendum. That said, the technical does suggest that prices have fallen to the trend line and that it could keep prices supported despite the pause. Investors have not entirely exited the market either, shuffling into the defensive utilities sector, which gained 1.41% on Tuesday.