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Market Snapshot: S&P 500, Nasdaq snap 4-day losing streak as tech stocks halt slide

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An Apple store in Beijing.

U.S. stocks closed mostly higher Monday, with the S&P 500 and the Nasdaq each snapping a four-day shedding streak on the again of a recovery in generation stocks.

The day’s features have been quite broad-based, with eight of the 11 number one S&P 500 business groups completing in certain territory led via utilities and actual estate, while the Dow Jones Transportation Average rallied to a document.

How did the primary benchmarks fare?

The S&P 500 SPX, +Zero.19% rose 5.45 points, or Zero.2%, to finish at 2,877.13 and the Nasdaq Composite Index COMP, +Zero.27% received 21.62 points, or Zero.3%, to 7,924.16. The Dow Jones Industrial Average DJIA, -Zero.23% fell 59.47 points, or Zero.2%, to 25,857.07 however the Dow transports DJT, +1.82% climbed 1.eight% to 11,554.08.

Both the S&P and the Nasdaq are coming off 4 straight daily declines. Last week was the S&P’s first adverse week of the past 4, and it represented the largest weekly share drop since June. The Nasdaq suffered its largest weekly drop since March.

What drove the marketplace?

Recent marketplace process has been driven partly via uncertainty surrounding business between the U.S. and its major buying and selling companions. President Donald Trump just lately threatened China with the latest in a sequence of tariffs, which would affect an additional $267 billion in Chinese items. This comes on best of an already-proposed $200 billion in tariffs.

Read: Yardeni says profitable the business war with China will cause ‘the mum of all meltups’

Investors are concerned that such measures, particularly if they are met with retaliatory movements via different international locations, could spiral into a full-on business war, one who may have adverse implications for global economic growth.

Technology stocks have also driven buying and selling of overdue, with the field—via a ways the most powerful performer thus far this yr—seeing steep losses closing week. The crew can also be sensitive to business problems. Over the weekend, Trump printed a tweet urgingApple Inc. AAPL, -1.34% to shift manufacturing out of China to the U.S. Apple mentioned tariffs in opposition to China would affect a “wide variety” of its products.

What have been strategists saying?

“We’re nonetheless near all-time highs in spite of closing week’s selloff, however the primary precedence for buyers will probably be to try what all is going on. There’s so much to take in this week — between tariffs, tech, all the economic knowledge that may come out — and with all those moving parts, no single factor can also be pulled out because the factor moving markets,” mentioned Mary Ryan, senior fairness options strategist at E-Trade.

Ryan added that she was paying explicit consideration to the business factor. “When it seems like [the tariffs] numbers are being thrown out at random, it makes it very tricky to make concrete calculations about what kind of affect they could have. When it comes to the tech sector, for example, how will tariffs affect retail buyers? Certain costs?”

“Emerging markets have had a tough yr however nonetheless offer buyers longer-term alternatives. According to projections from the [Brookings Institution], an estimated 2.3 billion other folks will enter the middle elegance via 2030, 88% of which live in Asia. Investors will have to continue to put portfolios to participate within the speedy growth of Asia’s center elegance over the long-term,” mentioned Jason Pride, leader funding officer of private client for Glenmede, in a notice.

See: These 7 international locations are maximum vulnerable to a currency crisis: Nomura

Which stocks have been in focus?

Shares in Apple fell 1.3% within the wake of Trump’s feedback however nonetheless up 29% for the yr.

Tesla Inc. stocks TSLA, +eight.46%  rallied eight.5% after Chief Executive Elon Musk announced a management shake-up overdue Friday. That transfer got here after the automobile maker’s stock slumped in Friday’s consultation as more executives departed and Musk gave the impression to smoke marijuana all over an interview.

Nike Inc. NKE, +2.24%  stocks rose 2.2% after knowledge showed that the company’s on-line gross sales grew 31% following its determination to craft its “Just Do It” marketing campaign round ex–NFL participant Colin Kaepernick. Nike was also the most productive Dow performer of the day.

Science Applications International Corp. SAIC, -Nine.14%  mentioned it could buy Engility Holdings Inc. EGL, -Zero.11%  in a stock deal valued at $2.5 billion, together with the repayment of $900 million in debt. Shares of Science Applications sank Nine.1% while Engility edged down Zero.1%.

United Rentals Inc. URI, +5.05%  mentioned it could buy BlueLine Rental in a money deal valued at $2.1 billion. Shares of United rose 5.1%.

Snap Inc. SNAP, -1.91%  fell 1.Nine% after the company mentioned its leader technique officer will be the newest executive to depart the company.

Shares in Alibaba Group Holding Ltd. BABA, -3.70% slid 3.7% following news that wealthy person Jack Ma plans to step down as executive chairman of the Chinese e-commerce giant in a yr.

CBS Corp.’s stock CBS, -1.53%  dropped 1.5% after Les Moonves, the longtime chairman and CEO, resigned Sunday following new sexual misconduct allegations in opposition to him from six additional women.

Which economic reviews have been in focus?

Boston Federal Reserve President Eric Rosengren mentioned, in an interview with MarketWatch, that he doesn’t learn much concerning the threat of a possible recession from the shape of the yield curve. He also mentioned monetary risks now are coming from smaller banks.

What have been different markets doing?

Stocks in Asia fell after Trump’s comment on Apple’s manufacturing, which put some pressure on Asian tech stocks. European stocks ended modestly higher.

Oil futures CLV8, +Zero.36% reversed path to slide amid continued issues over the affect of renewed sanctions on Iran and signs of a pickup in crude call for from China.

—Victor Reklaitis contributed to this file

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