NEW YORK CITY (REUTERS) - The second to last trading day of 2016 closed with US stocks in the red on weakness in bank stocks. The major US indices took a break from the rally that began in the wake of Mr Donald Trump's Nov 8 election. Many investors are betting on his plan to cut taxes and regulations along with economic stimulus.
Senior managing partner at Meridian Equity Partners, Mr Jonathan Corpina, said: "I think, what has happened over time is that, since the election and the run-up in the market, I think, portfolio managers and individual investors have positioned themselves accordingly, and have enjoyed this run-up in the market, and probably a few weeks ago, two weeks ago, probably, put everything on hold until 2017."
New economic data showed a drop in US exports last month pushed the country's trade deficit in goods higher, while the number of Americans filing for unemployment benefits fell last week in a positive sign for the labour market.
Drug developer Cempra lost more than half its value after US health regulators rejected its antibiotic.
In Europe, Britain's FTSE set a record high after a rally in precious metals miners, though other country indexes closed lower.