US stocks retreat after big Monday rally

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NEW YORK: Wall Street stocks ended lower on Tuesday (May 19) as top US economic officials warned the US economy faces continued risks, causing the ...

NEW YORK: Wall Street stocks ended lower on Tuesday as top US economic officials warned the US economy faces continued risks, causing the market to give back some of the gains from the prior session.

It is not unusual to see a pullback in stocks after a big rally, but a high-profile Capitol Hill hearing highlighted lingering concerns on how to safely revive the economy, analysts said. The White House has urged states to reopen their economies as quickly as is safely possible and has not embraced the need to approve additional fiscal support right now - a stance taken by congressional Democrats.Federal Reserve Chair Jerome Powell has in recent days suggested that more will be needed to ease the unprecedented economic pain, but was careful during the hearing not to stray into recommending more spending - the purview of Congress.

In Tuesday's session, Southwest Airlines rose 2.2 per cent as it reported a"modest improvement" in demand in May after bookings more than offset cancellations for the first time since the COVID-19 crisis.

 

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