US stocks end lackluster session down slightly USA News Update

US stocks end lackluster session down slightly

After the rally that closed the previous week, stocks posted a relatively lackluster performance in Monday’s trading. Major averages spent the day bouncing off the unchanged line.

Major averages eventually ended the session in negative territory. The Nasdaq edged down 11.34 points or 0.1% to 13,229.43 and the S&P 500 fell 8.58 points or 0.2% to 4,273.79, while the narrower Dow slipped down 199.90 points or 0.6% to 33,562.86.

The choppy trading on Wall Street came as some traders looked to pause to assess the outlook for the markets after the strong upward movement seen last Thursday and Friday.

The rally came amid the passage of legislation raising the US debt ceiling and the release of the closely watched monthly jobs report.

With the surge, the Nasdaq hit its best closing level in more than a year, while the S&P 500 set a new nine-month closing high.

Trading activity may remain somewhat subdued throughout the week as traders anticipate the Federal Reserve meeting next week.

The Fed is due to announce its final monetary policy decision next Wednesday, with the central bank expected to largely pause its recent round of interest rate hikes.

Major inflation reports should also be in the spotlight next week as the data could affect the Fed’s resumption of rate hikes next month.

In US economic news, the Institute for Supply Management released a report showing that service sector activity in the United States saw only modest growth in May, the activity index in the sector having fallen more than expected.

The ISM said its services PMI fell to 50.3 in May from 51.9 in April, although a reading above 50 still indicates growth in the sector. Economists had expected the index to drop to 51.5.

A separate report released by the Commerce Department showed that new orders for US manufactured goods rose slightly less than expected in April.

The report said factory orders rose 0.4% in April after rising a downwardly revised 0.6% in March.

Economists had expected factory orders to rise 0.5% from the 0.9% advance originally announced for the previous month.

Industry News

Most major sectors showed only modest movements during the day, although considerable weakness was visible among networking stocks.

The NYSE Arca Network Index fell 2.1% after ending last Friday’s trading at its best closing level in more than a month.

Oil services stocks also saw considerable weakness despite an increase in the price of crude oil, driving the Philadelphia Oil Services Index down 1.9%.

Semiconductor, computer hardware and tobacco stocks also saw notable weakness, while some strength was visible among utilities and software stocks.

Other markets

In overseas trading, stock markets in the Asia-Pacific region were mostly up in Monday’s trading. Japan’s Nikkei 225 index jumped 2.2%, while Hong Kong’s Hang Seng index rose 0.8%.

Meanwhile, major European markets turned lower on the day. While the French CAC 40 index fell by 1.0%, the German DAX index fell by 0.5% and the British FTSE 100 index fell slightly by 0.1%.

In the bond market, Treasuries showed a lack of direction during the session before closing roughly flat. Subsequently, the yield on the benchmark 10-year note, which moves opposite to its price, rose less than a basis point to 3.693%.

Look forward

Overall business activity is expected to remain relatively muted on Tuesday amid a quiet day on the US economic front.

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US stocks end lackluster session down slightly

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