Investors are questioning whether stocks are in the first stages of a correction they've dodged for years. Chris Dignam reports.
Investors keeping a close eye on U.S. stocks on Friday, after the biggest drop in three months for both the Dow and S&P 500 the day before. Those two major indices hitting record highs this month - a fact the president has cheered repeatedly. But Thursday's decline has some investors wondering how long the ride higher will last, says Reuters Markets Editor Dan Burns. SOUNDBITE: DANIEL BURNS, FINANCIAL MARKETS EDITOR, REUTERS, (ENGLISH) SAYING: "The question on so many people's minds is: are we seeing the first stages of the correction that we've dodged for years now, frankly. It is an old bull market and some of these internal measures are showing signs of cracking and suggesting that, perhaps, this might be the moment where we begin to embark on a more sustained downward path." Burns says yesterday's and last Thursday's big falls mark an important break from a period of low volatility. SOUNDBITE: DANIEL BURNS, FINANCIAL MARKETS EDITOR, REUTERS, (ENGLISH) SAYING: "We haven't seen two 1-plus percent drop days this close to each other since Trump was elected. We're seeing far more stocks making new lows than highs - for seven days in a row now. That's also something we haven't seen since the election." Trump's comments about the violence in Charlottesville in the last week escalating worries - among some market strategists - about the Trump administration's ability to push through its economic agenda, leading to rumors that Trump's top economic advisor Gary Cohn - who is viewed by investors as a moderating force in the White House - might quit.