By Mike Bird
The Dow Jones Industrial Average slipped Monday, after Friday's rally sent it closer than ever to 20000.
The blue-chip index fell 48 points, or 0.2%, to 19916 on Monday. The S&P 500 declined 0.1%, and the Nasdaq Composite rose 0.1%.
The Dow industrials had risen to within one point of its next thousand-point milestone on Friday before retreating slightly. It was the best week for the Dow industrials since Dec. 9, and the S&P 500 and the Nasdaq Composite closed at fresh highs.
Still, many investors and analysts say they expect volatility to pick up in the coming months, when details about President-elect Donald Trump's prospective policies--including tax cuts and fiscal stimulus--become more clear. Some investors have dialed back on popular postelection trades in recent weeks.
Elsewhere Monday, the Stoxx Europe 600 declined 0.6%, with the banking and energy sectors -- which have helped power the recent rally in stocks -- losing more than 1% each.
The fall in stocks followed a sharp decline in the pound, which slumped to its lowest level since October against the dollar after U.K. Prime Minister Theresa May said Britain would make a definitive break from the European Union.
The government has promised that Article 50 -- which begins a two-year Brexit negotiation period -- will be triggered by the end of March.
The pound fell 1.2% against the U.S. dollar to $1.2150. The U.K.'s FTSE 100, which tends to benefit from a fall in sterling, was one of the few European indexes in positive territory, rising 0.3% to a fresh high.
"The government appears ill-prepared for the Brexit talks," a research notefrom J.P. Morgan researchers said. According to the analysts, of the widely traded group of 10 currencies, only sterling remains overvalued against the dollar.
In the bond markets, U.S. 10-year Treasury yields fell to 2.374% from 2.417% Friday, according to Tradeweb.
Earlier, Hong Kong's Hang Seng rose 0.2% and the Shanghai Composite Index added 0.5%. Japanese markets were closed for a public holiday.
Write to Mike Bird at Mike.Bird@wsj.com
(END) Dow Jones Newswires
January 09, 2017 09:54 ET (14:54 GMT)
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