US stocks struggling to extend winning streak, mildly weaker during early trade

Major US equity indices struggled to extend the recent winning streak and witnessed a mildly weaker opening on Tuesday as investors took a breather following a session where both the Dow and the S&P 500 ended at record highs.

During the opening hour of trade, the Dow Jones Industrial Average was down around 30-points to 22,091, while the broader S&P 500 Index lost 4-points to 2,476. Meanwhile, tech-heavy Nasdaq Composite retreated over 18-points to 6,365.

The initial leg of downside, however, remained limited as investors awaited results from big retail names, which would conclude a largely positive earnings season, which to some extent eased concerns about stretched valuations and remained supportive of the recent record setting rally. 

With the CBOE Volatility Index (VIX) hovering near its all time low levels, the subdued market action could be categorized as a phase of consolidation before the next leg of directional move. 

Moreover, investors seemed reluctant to move out of the equity assets, class as even a small positive catalyst could trigger the next leg of solid upside movement even from current levels, which would thus limit any immediate sharp downslide.