The Nasdaq closed at a record Tuesday and briefly reached 10,000 for the first time, in a day of mixed trading.
The Dow Jones Industrial Average snapped a six-day winning streak, ending down 300 points, or 1.09%, to 27,272, while the S&P 500 fell 0.78% to 3,207.
U.S. stocks finished higher Monday and the Nasdaq closed at a record high on optimism about the strength of the economic recovery. The Dow gained 461 points, or 1.7%, to close at 27,572, rising for the sixth consecutive session. The S&P 500, which rallied to its highest level since February, closed up 1.2%.
The gains have been fueled in part by trillions of dollars in central bank and government support and hopes for a so-called V-shaped economic recovery from the coronavirus pandemic.
However, there are concerns that markets have risen too far and too fast over the past two months, particularly after the National Bureau of Economic Research confirmed the U.S. entered a recession in February.
“The rally looks a little tired, as might be expected after the first week of June saw such a strong move higher," said Chris Beauchamp, chief market analyst at IG. "The positive impact from the ECB meeting and Friday’s U.S. jobs report has waned, with no fresh bullish news to take their place.
“But such volatility has been seen several times before over the past three months, and such sharp reversals have merely been ‘resets’ of bullish price action, clearing the decks for another move higher as money continues to flow into equities," Beauchamp added.
The Federal Reserve's rate-setting committee will meet Tuesday and Wednesday and is expected to keep rates near zero and not any issue any major policy decisions. However, Fed-watchers will be curious to see whether May's employment data have changed the body's economic projections.
The Fed will announce its decision on interest rates Wednesday afternoon followed by a news conference from Federal Reserve Chairman Jerome Powell.