The U.S. Stock Market started the week in a weaker tone, as major indexes pulled back from Friday’s rally which was fuelled by expectations of a Federal Reserve rate cut.
The Dow Jones Industrial Average fell 349 points (0.8%) on Monday. It has fallen from recent record highs. S&P 500 fell by 0.4% while Nasdaq Composite dropped 0.2%. This reflects investor caution after Wall Street’s last-week gains.
Tech Stocks show mixed signals
The technology shares are divided. Apple, Meta and Tesla slipped lower while Alphabet and Amazon made modest gains. Nvidia, which is one of the main drivers of market momentum this year thanks to its dominant position in AI chips, has dipped a little ahead of its highly anticipated earnings report on Thursday.
The Focus on Crypto, Oil and Bonds
The market pullback was not limited to stocks:
Bitcoin has dropped to $111,300 from its highs of last week.
Treasury yields have risen, a sign of the ongoing inflation concern.
The oil price continues to rise, causing investors to pay attention to the energy market.
What’s next for Wall Street
Investors will be watching closely this week as they await consumer confidence, inflation data and corporate earnings reports. These updates may influence expectations of the Federal Reserve’s interest rate decision in September.
Wall Street is currently in a cautious, but vigilant mood, as traders balance their hopes for rate reductions against the lingering concerns about inflation and corporate profits.
Disclaimer: This is not financial advice. It’s just for informational purposes. Stock market investments carry risks. Readers should do their own research, or consult with a qualified advisor before making any decisions.