Stocks have moved mostly lower during trading on Monday, extending the sell-off seen to close out the previous week. With the decrease on the day, the major averages have fallen to their lowest intraday levels in over a month.
Currently, the major averages are turning in a mixed performance, as the Nasdaq has rebounded into positive territory. While the Nasdaq is up 16.77 points or 0.1 percent at 12,856.06, the Dow is down 334.88 points or 1 percent at 33,476.52 and the S&P 500 is down 36.79 points or 0.9 percent at 4,234.99.
Lingering concerns about the outlook for interest rates continue to weigh on Wall Street ahead of the Federal Reserve’s monetary policy meeting next week.
Weakness in overseas markets has also carried over into the U.S. amid concerns about global economic growth amid a surge in Covid-19 cases in China.
Trading activity remains somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.
Reports on durable goods orders, consumer confidence, new home sales, first quarter GDP and personal income and spending are likely to attract attention in the coming days.
Traders may also be reluctant to make significant moves ahead of the release of earnings news from a number of big-name companies.
Apple (AAPL), General Electric (GE), Alphabet (GOOGL), Microsoft (MSFT), Boeing (BA), McDonald’s (MCD), Twitter (TWTR), Amazon (AMZN), Intel (INTC) and Exxon Mobil (XOM) are just a few of the companies due to report their quarterly results this week.
Energy stocks have shown a substantial move to the downside on the day, moving sharply lower along with the price of crude oil.
With crude for June delivery plummeting $5.38 to $96.69 a barrel, the Philadelphia Oil Service Index is down by 7 percent and the NYSE Arca Oil Index is down by 5.1 percent.
Significant weakness is also visible among steel stocks, as reflected by the 4.3 percent nosedive by the NYSE Arca Steel Index.
Gold stocks are also moving considerably lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 4.1 percent.
Banking, telecom and utilities stocks are also seeing notable weakness, while semiconductor stocks are among the few groups bucking the downtrend.
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Monday. Japan’s Nikkei 225 Index tumbled by 1.9 percent, while China’s Shanghai Composite Index plummeted by 5.1 percent.
The major European markets have also shown notable moves to the downside on the day. While the German DAX Index has slumped by 1 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both down by 1.5 percent.
In the bond market, treasuries are seeing continued strength after ending last Friday’s trading modestly higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 11.1 basis points at 2.795 percent.
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