Stocks Turn Away From Record Highs as Hedge Fund Short-Covering Dries Up, Oil Futures Turn Negative
The major averages have retreated into negative territory in Thursday's midday trade after setting record highs for a sixth consecutive day as profit-taking was triggered once a leveraged option fund concluded its multi-billion dollar short-covering spree.
The S&P 500 slipped into red for the first time in eight days, coinciding with reports that Catalyst Fund had covered a $17 billion short position, and oil futures reversed early gains. As a result, the energy sector is taking the brunt of Thursday's profit-taking pressure, outpacing losses in the consumer discretionary and financial sectors.
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