US Markets Close Flat

Analysts have been girding for a retreat or pause after US stocks gained nearly 20 percent since late December.

"The market is pulling back after a very strong rally," said Adam Sarhan, chief executive of 50 Park Investment. Stocks "are waiting for the next bullish catalyst," he added.

Investors were little troubled by a second day of testimony from Federal Reserve Chairman Jerome Powell and a hearing with US Trade Representative Robert Lighthizer, who reported "real progress" on talks with China, but said significant work still needs to be undertaken before a final deal is struck.

President Donald Trump's former attorney, Michael Cohen, revealed a litany of charges about his former boss in an explosive hearing that captivated political observers but did not appreciably move stocks.

During the trading session, health insurers UnitedHealth Group and Humana each lost almost five percent, and rival Cigna shed 3.9 percent after Democratic US Representative Pramila Jayapal introduced "Medicare for all" legislation targeting insurance industry profits.

The bill is still a long way from becoming law, but the proposal indicates strengthening momentum for the issue among progressive Democrats. (AFP)