U.S. stocks closed mixed on Wednesday, with a post-U.S. election rally slowing down as financials dropped more than 1 percent.
The Dow Jones industrial average ended about 55 points lower, snapping a seven-day winning streak, with Goldman Sachs contributing the most losses. The S&P 500 fell around 0.15 percent, with financials leading decliners. The Nasdaq composite outperformed, rising around a third of a percent after opening lower.
"Nothing lasts forever. It's unusual to see such consistent upward trading," said Mike Bailey, director of research at FBB Capital Partners. "Investors are taking a breath to say what if these policies don't happen or don't happen as quickly as thought."
The three major U.S. stock indexes had spiked more than 2 percent entering Wednesday trading since Republican Donald Trump upset heavy-favorite Hillary Clinton to win the presidential election, lifted by the prospect of more growth-oriented economic policies from President-elect Trump, including higher infrastructure spending and deregulation of the financial sectors.
"The bounce in the stock market is a combination of optimism for faster economic growth and relief that the election is over," said Kate Warne, investment strategist at Edward Jones.
"The [stock] market is due for a correction, and we have two factors: the dollar ... and rising bond yields," said Peter Cardillo, chief market economist at First Standard Financial. "If you look at the 10-year yield, it's knocking on the door of 2.5 percent," he said. "At some point, that is going to prevent equities from going much higher."