U.S. stocks ended mixed on Monday, struggling to find their way as inflation rose and concerns about the growth outlook persisted.
The S&P 500 ended choppy lower, down 0.4% at 4,008.01. The Nasdaq fell 1.2% to end at 11,662.79 as big tech companies including Apple (apple) fell and dragged the index lower. The Dow Jones Industrial Average closed slightly higher at 32,223.42.
U.S. crude oil prices (CL=F) erased previous losses and even rose after China’s new economic data is weaker than expected, as the latest wave of virus-related restrictions in the country restricted liquidity. China’s retail sales fell 11.1% year-on-year in April, the biggest drop since March 2020, while industrial production fell 2.9% year-on-year.
Monday’s drop in risk assets added to recent volatility across the market. Stocks ended last week with a sixth straight weekly loss, leaving the S&P 500 16.1% below its all-time high since Jan. 3.Investors, in turn, weighed the Fed’s risk bookings for a further downturn Seeking to keep inflation at a level close to the highest in four years, Geopolitical turmoil in Ukraine continues as China grapples with its biggest coronavirus outbreak since 2020.
Amid these concerns, Wall Street analysts are more cautious about the stock. Goldman Sachs cuts year-end target price The S&P 500 rose to 4,300 from 4,700. Goldman Sachs chief U.S. equity strategist David Kostin said the lower target reflects “higher interest rates and slower economic growth than we had previously assumed.” In the event of a recession, the S&P 500 could fall further to 3,600, Kostin added.
Other strategists also highlighted the plethora of risks facing stocks right now and cautioned against reading too deeply into the one-day rally.
Eric Friedman, chief investment officer at Bank of America Asset Management, said: “We think the turning point is really an open question at this juncture. We’re probably somewhere between what we call two repricings: repricing. One is the Fed-induced repricing,” Tell Yahoo Finance Live. “When the Fed says they’re going to raise rates, prices in all other asset classes have to go down, and yields have to go up. So we’re really in the middle. There could be a tipping point there, depending on what the Fed decides to do in terms of communication. .”
“But the next repricing — again potentially more downside risk — is if we start to see higher commodity costs and higher borrowing costs structurally seep into the real economy and stay there for a while,” he added. “So do think we’re seriously oversold … but we’re still going to be a little bit cautious right now and think there’s more potential downside going forward.”
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4:04pm ET: Stocks close mixed as tech faces fresh pressure: Nasdaq down 1.2%, Dow holds tight gains
Here are the key market moves as of 4:04 p.m. ET:
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S&P 500 (^GSPC): -15.87 (-0.39%) to 4,008.02
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road (^DJI): +26.76 (+0.08%) to 32,223.42
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Nasdaq (^IXIC): -142.21 (-1.20%) to 11,662.79
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thick(CL=F): +$3.53 (+3.19%) to $114.02 per barrel
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gold (GC=F): +$16.70 (+0.92%) to $1,824.90 per ounce
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10-year Treasury note (^TNX): -5.8 basis points, yield 2.8770%
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10:10 a.m. ET: The Empire State manufacturing index unexpectedly posts its second negative reading in three months
A closely watched measure of business activity in New York state slipped into negative territory in May, another sign of slowing activity in a key part of the U.S. economy.
this Title Index of Empire Manufacturing Survey A new report on Monday showed that 100% of overall business conditions fell 36 points to -11.6 in May. According to Bloomberg data, consensus economists have been looking for a reading of 15.0.
The decline was accompanied by a decline in both new orders and shipments, both reversing after an increase in April. Businesses’ assessment of current conditions has also deteriorated, with 32% of respondents saying it has worsened over the past month, while 20% said it has improved.
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9:34 a.m. ET: Stocks open lower
Here are the main moves in the market as of 9:32AM ET:
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S&P 500 (^GSPC): -14.32 (-0.36%) to 4,009.57
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road (^DJI): -57.11 (-0.18%) to 32,139.55
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Nasdaq (^IXIC): -81.09 (-0.69%) to 11,723.92
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thick(CL=F): unchanged at 110.49
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gold (GC=F): -$4.20 (-0.23%) to $1,804.00 per ounce
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10-year Treasury note (^TNX): -2.2 basis points, yield 2.9130%
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7:45 a.m. ET Monday: Stock futures continue to fall
Here’s where the market trades before the market opens Monday morning:
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S&P 500 futures (ES=F): -9.75 points (-0.24%) to 4,010.00
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Dow futures (YM=F): -26 points (-0.08%) to 32,094.00
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Nasdaq Futures (NQ=F): -42.50 points (-0.34%) to 12,340.25
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thick(CL=F): -$1.07 (-0.97%) to $109.42 per barrel
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gold (GC=F): -$5.10 (-0.28%) to $1,803.10/oz
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10-year Treasury note (^TNX): -1.4 basis points, yield 2.919%
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.
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