U.S. equities closed lower on Thursday, with real estate falling around 1 percent, as investors eagerly awaited President-elect Donald Trump's inauguration.
"Everyone is just waiting for the inauguration," said Jeremy Klein, chief market strategist at FBN Securities. "The market just feels a little heavy." He also said: "When you start seeing volatility in other macro markets — specifically FX — that's going to take its toll on stocks." The U.S. dollar spiked against a basket of currencies on the back of strong U.S. economic data.
The Dow Jones industrial average briefly fell about 100 points in afternoon ET before closing about 70 points lower, with Goldman Sachs contributing the most losses. The index also recorded a five-day losing streak.
"I think this is a pause ahead of the inauguration because there is so much policy uncertainty," said Kate Warne, investment strategist at Edward Jones. "We don't know what they will be focusing on first." Trump is set to take the oath of office on Friday.
The S&P 500 dropped around a third of a percent, with real estate leading decliners. The Nasdaq composite fell 0.3 percent.
"Part of it is people taking profit off the table," said John Traynor, chief investment officer at People's United Bank. "We were surprised by the November-December rally, so taking profit off the table the day before the inauguration makes sense."
Stocks in the United States rallied to record highs following Trump's victory in November, on the back of expectations for lower corporate taxes, more government spending and deregulation of certain sectors.