The American market has moved back into consolidation mode

The S&P 500 index had a six-day growth streak under its belt, but on the seventh day the market decided to take a break. Today‘s session was held in consolidation mode after a powerful rally that started from the low of April 7. The Dow and Nasdaq indexes followed the S&P 500, recording moderate losses, while the Russell 2000 small–cap index closed unchanged.

No significant macroeconomic statistics were published in the United States, and the news background on companies remained subdued. President Trump‘s visit to Congress attracted some attention, where he discussed the goals of the budget bill with Republicans in the House of Representatives.

It is reported that he urged not to touch the financing of Medicaid, and also criticized the initiative of the faction that promoted raising the limits on property tax deductions above the proposed $30,000, saying: “Let it be as it is.” At the same time, there was an opinion that none of the parties was definitively convinced by the president‘s arguments, which added uncertainty around the fate of the bill and strengthened the mood for consolidation.

In general, there were no active sales. Eight sectors of the S&P 500 closed down, but only the energy sector (-1.0%) showed a decrease of 1% or more. Losses in other sectors ranged from 0.2% to 0.8%. The leaders were the protective sectors — utilities (+0.3%), healthcare (+0.3%) and consumer goods (+0.2%).

The width of the market has shifted towards sellers: on the NYSE, the number of falling securities exceeded the growing ones by a ratio of 8 to 5, on the Nasdaq — about 11 to 10. As part of the Dow index, Home Depot shares (HD 377.05, -2.21, -0.6%) ended the day lower after a mixed Q1 report that included lower earnings per share, higher revenue relative to forecasts, confirmation of the annual forecast and a statement that the company does not plan to raise prices in response to tariffs. Alphabet securities (GOOG 165.32, -2.55, -1.5%) also fell in price against the background of the I/O event; while Tesla shares (TSLA 343.82, +1.73, +0.5%) showed growth, but closed well below the intraday high at $354.98.

In general, mega–securities traded weakly today, which corresponded to the consolidation mood, but by the end of the session they showed some strength, which helped the indices partially recover their morning losses. The Vanguard Mega–Cap Growth ETF (MGK) for large growth companies decreased by 0.5%, recovering part of an intraday drop of 1.2%.

Our American FTinvest 11 portfolio was mostly near the zero mark today, the total decrease for the day was 0.06%, the index closed at 732.96.