U.S. Stocks Close Weak On Growth Worries; Nasdaq Sheds More Than 1 PercentJuly 3, 2023
U.S. stocks closed lower on Monday with those from the technology sector suffering sharp losses.
Worries about tighter monetary policies and the impact of higher rates on economic growth weighed on the market.
Investors looked ahead to the results of Bank Stress Tests, and some crucial economic data releases this week.
The major averages all closed in the red. The Dow edged down 12.72 points or 0.04 percent to settle at 33,714.71, and the S&P 500 drifted down 19.51 points or 0.45 percent to 4,328.82, while the Nasdaq ended down 156.74 points or 1.16 percent at 13,335.78.
In the coming days, traders are likely to keep a close eye on reports on durable goods orders, consumer confidence, new home sales and pending home sales.
The Commerce Department is also due to release its report on personal income and spending in the month of May, which includes a reading on inflation said to be preferred by the Federal Reserve.
The consumer price inflation data could significantly impact opinions regarding whether the Fed will follow through on its forecast interest rate hikes.
Shares of Tesla lost more than 6 percent following a rating downgrade by Goldman Sachs.
Microsoft, Visa, Merck, Salesforce.com, J&J and Amgen lost 1 to 2 percent.
Home Depot climbed about 2.5 percent. Nike surged 2 percent ahead of earnings. Chevron, Verizon, Intel, Honeywell International and Caterpillar gained 1 to 1.8 percent.
Pacwest rallied about 4 percent, buoyed by an announcement from the company that it will be selling a $3.5 billion lender finance loan portfolio to Ares Management.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index dipped by 0.3 percent, while China’s Shanghai Composite Index slumped by 1.5 percent.
European stocks closed slightly lower as worries about growth amid rising interest rates, and political uncertainty in Russia rendered the mood cautious.
Activity was mostly stock specific with latest quarterly earnings, and other corporate news providing some direction.
A short-lived mutiny in Russia by the Wagner paramilitary group revived concerns over nuclear arsenal security. German business sentiment pointed to the likelihood of a longer recession, further weighing on sentiment.
The pan European Stoxx 600 edged down 0.1 percent. The U.K.’s FTSE and Germany’s DAX both ended down 0.11 percent, and France’s CAC 40 climbed 0.29 percent.
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