S&P 500 snaps eight-day winning streak, falls from record

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Nov. 9 (UPI) — The S&P 500 snapped an eight-day losing streak on Tuesday as investors pulled back after a record run.

The broad index dropped 0.35%, falling from a record after surpassing 4,700 points for the first time on Monday. The Dow Jones Industrial Average also fell 112.24 points, or 0.31%, and the Nasdaq Composite declined 0.6%.

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Markets reacted after the U.S. Department of Labor reported the October producer price index rose 0.6% month over month, while wholesale prices increased 8.6% from October 2020.

Investors also were keeping an eye on the October consumer price index, which is set for release Wednesday and estimated to show a 0.6% increase from the prior month.

“Bottom line, while today’s data was as expected, the numbers are certainly eye-opening in terms of the pace gains,” Bleakley Advisory Group CIO Peter Boockvar said in a note.

Shares of PayPal fell 10.46% to drag down the S&P 500 and Nasdaq after the company fell short of quarterly revenue expectations, while AMC stock, which was targeted as a “meme stock” by online traders earlier this year declined 11.38% despite beating earnings expectations.

Tesla stock also fell 12% in its second consecutive day of decline amid reactions to founder Elon Musk pledging to sell 10% of his stock.

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General Electric stock rose 2.66% as the industrial giant announced it would break into three different companies — one each to focus entirely on aviation, healthcare and energy.

Tuesday also saw a rise in cryptocurrencies as bitcoin rose to a record price of $68,530 and Ethereum also hit a record at $4,837.