Highlights
Equities ended narrowly mixed Monday with another rally in Nvidia propping up the major averages. The Dow Jones industrial average eased by 0.3 percent, the S&P 500 firmed 0.1 percent, and the Nasdaq gained 0.6 percent. Bond yields declined while oil prices plunged and the dollar rose.
Nvidia advanced after introducing a new batch of microchips. The move underpinned a market that struggled elsewhere after a much weaker than expected manufacturing purchasing managers report renewed concerns about recession. The soft PMI report pushed down bond yields and worries about a slowing economy appeared to weigh more heavily with investors than the positive effect of lower interest rates.
After the purchasing managers report and last week's soft consumer spending figures, attention focused on news that the Atlanta Fed's GDP Now model estimated second quarter growth at 1.8%, down from 2.7% last week. Investors will scrutinize Tuesday's job openings report for more evidence the economy slowed in the second quarter.
Among other sectors, energy had a bad day as oil prices dropped on concern about slowing demand and after OPEC announced a surprise plan to restore some production to the market this year. Other losers included industrials, financials, utilities, materials and consumer staples. On the positive side, health care and information technology outperformed.
Meanwhile, meme stocks rallied after the notorious trader Roaring Kitty claimed to have put on a huge position in Gamestop.
Nvidia advanced after introducing a new batch of microchips. The move underpinned a market that struggled elsewhere after a much weaker than expected manufacturing purchasing managers report renewed concerns about recession. The soft PMI report pushed down bond yields and worries about a slowing economy appeared to weigh more heavily with investors than the positive effect of lower interest rates.
After the purchasing managers report and last week's soft consumer spending figures, attention focused on news that the Atlanta Fed's GDP Now model estimated second quarter growth at 1.8%, down from 2.7% last week. Investors will scrutinize Tuesday's job openings report for more evidence the economy slowed in the second quarter.
Among other sectors, energy had a bad day as oil prices dropped on concern about slowing demand and after OPEC announced a surprise plan to restore some production to the market this year. Other losers included industrials, financials, utilities, materials and consumer staples. On the positive side, health care and information technology outperformed.
Meanwhile, meme stocks rallied after the notorious trader Roaring Kitty claimed to have put on a huge position in Gamestop.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
