Markets were mixed on Thursday.
The Dow Jones Industrial Average rose marginally to close at another record high but the S&P 500 fell 0.2 percent.
The STOXX Europe 600 rose 0.1 percent. The FTSE 100 rose 0.9 percent but the DAX 30 fell 0.2 percent.
In Asia, the Nikkei 225 fell 0.3 percent but the KOSPI slumped 1.7 percent, dragged down by a 2.5 percent plunge in Samsung Electronics as its de facto head testified for the first time at his corruption trial.
“Investors are leaning a little bit more cautiously simply for the very, very near term because of bullish sentiment being higher than normal,” said Michael Antonelli, equity sales trader at Robert W. Baird & Co.
“We think this pullback has further to go,” said Deutsche Bank’s European equity strategists in a note on Thursday.
While valuations are keeping some investors cautious, Goldman Sachs said that there is one measure that suggests stocks may still be cheap.
The “S&P 500 is expensive according to most valuation metrics, but appears attractively valued on free cash flow yield due to reduced capex investment,” said Goldman's Chief US equity strategist David Kostin.
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