The S&P broke a 3-day win streak to close down just 2 points. The Nasdaq Composite was the relative underperformer, shedding 0.09% for its second negative session in three.

However, there are also some gainers during the trading session if you ignore the muted action. And Airline and cruise operator companies saw their stocks jump as Covid cases in the U.S continue to decline.

Also CNBC reported that,

“Inflation fears, and the ways in which the Federal Reserve might respond, have weighed on sentiment recently, although the major averages are still hovering around all-time highs.

“Markets remain strong,” said Cliff Hodge, chief investment officer for Cornerstone Wealth.

“Economic growth is robust, monetary conditions remain extremely easy and consumers are flush with cash from stimulus as virus cases fall and the economy reopens.”

The S&P 500 and Dow are down 0.8% and 1.5%, respectively, from their May records. The Nasdaq has a little more ground to make up following a rotation out of growth-oriented areas of the market. The tech-heavy index is currently 3.3% from its April all-time high.

Looking forward, strategists at Morgan Stanley said to favour defendants and reasonably priced quality names during the mid-cycle transition.

“We think superior execution during the reopening phase and earnings stability are traits the market will reward,” the firm wrote in a note to clients.