Wall Street pauses rally to record highs

US equities closed in the red after a strong start to the day, led by gains in their overseas counterparts. US indexes closed at their daily lows, and retain a negative tone after the close, posting the first relevant correction in two months. The Dow Jones Industrial Average lost 54 points, to close at 23,273.96, while the Nasdaq Composite settled at 6,586.83, down 0.64%. The S&P lost 10 points, or 0.40%, to end the day at 2,564.98. Within the Dow, Wal-Mart was the best performer, adding 1.50%, followed by Nike that gained 1.25%. 

General Electric, on the other hand, led decliners, shedding 6.27% after Morgan Stanley and UBS reduced their ratings for the share due to concerns about dividend cuts. In the current earnings season, US companies have been generally reporting better-than-forecasted earnings, fueling the continued rally to record highs that was interrupted this Monday. 

News that Jerome Powell is now the new favorite to replace Janet Yellen as Fed's head have barely affected equities, although it should be good news for Wall Street, as Powell is seen as dovish on monetary policy, pretty much aligned with current head's Yellen most of the time, which means that his leadership, if it ever happens, will mean no abrupt changes in monetary policy.