US stocks retreat on profit taking

Stocks experienced a decline on Wednesday due to investors cashing in profits following the market’s recent hot streak. FedEx, the largest laggard in the S&P 500, lost over 10% due to disappointing revenue outlooks and disappointing second-quarter results.

The , a price-weighted index of 20 stocks, also fell by 0.9%. Google-parent Alphabet was among the best performers in the S&P 500, reaching a new 52-week high.

On Tuesday, stocks rose broadly, with the Dow advanced 251.90 points or 0.68% and the Nasdaq Composite jumping 0.66% to close above the 15,000 level for the first time since January 2022. The Dow closed at a fresh record high, while the S&P 500 gained 0.59%.

All three major averages are headed for a winning December and 2023 as stocks build on the recent rally and investors look forward to proposed rate cuts from the Federal Reserve in the new year. The S&P 500 has risen more than 4% this month and more than 24% year to date, while the Dow has added more than 4% and 13%, respectively.