(CNBC) — U.S. stocks declined on Wednesday, with benchmark indexes retreating from all-time highs, after the World Bank lowered its outlook for global growth.
“The World Bank cut the global-growth rate a bit. If the market needs an excuse to move lower because it’s overbought, let’s pin it on that. The market was probably due for a pause anyway regardless of that revision,” said Jim Russell, senior equity strategist for US Bank Wealth Management.
“Technicians would tell you we’re in an overbought situation right now. It does not mean we have to decline significantly, but more cautious strategists would point out that we’ve gone 32 months without a decline of 10 percent or more, and the average is 18 months since World War II. We’ve gone a lot longer than we normally go,” said Sam Stovall, managing director, U.S. equity strategy at S&P Capital IQ.