Highlights
Stocks ended weaker Monday as an early rebound effort from Friday's steep losses faltered amid a selloff in key big technology shares. The Dow Jones industrial average rose 0.1 percent, the S&P 500 fell 0.5 percent and the Nasdaq dropped 1.2 percent. US bond yields declined while the dollar oil prices gained.
Economic news was limited with the Dallas Fed manufacturing index coming in much weaker than expected. President Trump's remark that threatened 25 percent tariffs on imports from Canada and Mexico will take effect in March did not generate a huge reaction but added to the negative tone in the afternoon.
Among tech shares, Meta and Nvidia had a bad day to lead the decliners. Other weak sectors included. EVs, railways, utilities, engineering and construction, and retailers. Best were media, food, apparel, cosmetics, airlines, pharma, and tobacco. US Treasuries had a good day with strong demand reported in the 2-year note auction.
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.