US stocks fell on Tuesday, resuming their recent downward trajectory after last week’s rally.
The S&P 500 was down about 0.9% at midday, a day after US markets closed for Memorial Day. After ending a seven-week losing streak last week, the benchmark index has regained some strength and is on track for a slight loss this month. The Dow Jones Industrial Average was down 0.8%, while the Nasdaq Composite was down 0.7%.
Crude oil prices initially jumped after European Union leaders said they would impose a line Oil embargo on Russia due to its invasion of Ukraine, but later cut back their gains. The penalties will include Ban on ship insurance Which carries Russian oil, the Wall Street Journal reported. It would include an exemption for oil delivered from Russia via pipelines, which make up a third of the European Union’s purchases of oil from Russia, limiting some of its impact on the market.
Brent crude futures, the global benchmark, recently rose 0.5% to $118.22 a barrel. US West Texas Intermediate rose 2% to $117.38 a barrel, playing catch-up after the market closed on Monday.
Tuesday’s session will culminate in another volatile trading month, during which stocks around the world swung wildly as traders tried to assess the outlook for global economies. In the United States, stock I fell back shortly after the month started The decline continued amid a string of earnings and worse-than-expected economic data.
Throughout the month, earnings warnings from companies ranging from Snap To target growing concerns about the continuing impact of inflation, it has prompted investors to dump stocks in several industries.
By mid-May, it looked like the S&P 500 was going to close in a bear market, defined as a drop of 20% or more from its recent high, before a late-month rally pushed stocks higher. The S&P 500 is down about 14% from its January high.
Professional and individual investors alike battled last week’s rally in US markets, finding opportunities to collect stocks that saw their valuations plummet. However, the issues that drove stocks lower earlier this month haven’t receded yet.
Many traders are still concerned that the Federal Reserve’s aggressive rate hike plans could push the US economy into recession. Meanwhile, concerns about the economic slowdown in China and ongoing disruptions in the supply chain due to the pandemic and the war in Ukraine continued to weigh on investors’ minds.
“There is a little uncertainty in the market about the very rapid rally we have seen, and whether that can continue in a world where inflation is still an obvious factor,” said Edward Park, chief investment officer at Brooks MacDonald.
European Union leaders have taken a major step in the economic battle against Moscow over its invasion of Ukraine by agreeing to ban 90% of Russian oil imports by the end of the year. The ban has faced opposition from countries that rely heavily on Russian crude, especially Hungary. Photo: Oliver Mattis/The Associated Press
New survey data released on Tuesday showed that US consumer confidence fell slightly in May compared to previous months. President Biden is also expected to meet with Federal Reserve Chairman Jerome Powell on Tuesday at the White House.
Nine of the 11 sectors of the Standard & Poor’s 500 Index fell on Tuesday. The best performing sector was the energy sector, which rose on the back of higher oil prices.
marathon oilAnd the
And hes all advanced by more than 1%.
Stocks traded in the United States
It jumped 9.8% after the consumer goods company said it would add an active investor Nelson Peltz on its Board of Directors He revealed that his fund now owns a 1.5% stake.
The S&P 500 energy sector is on track to end May with the largest gain among the benchmark’s 11 groups, Extending a trend that thrived for much of 2022. But even some weaker stocks are set to end the month in the green, such as Netflix, Robinhood Markets and Zoom Video Communications.
When the S&P 500 Index is [close to entering] “A bear market, which has a major psychological impact on those who seek value,” said Craig Erlam, chief market analyst at Oanda. “I think the question that gets asked over and over again is, ‘Are we seeing a bottom in the markets? “
In the bond market, the yield is 10-year treasury bonds It rose to 2.688% from 2.748% Friday. Bond yields and prices move in opposite directions.
Offshore, the Stoxx Europe 600 continental index fell 0.8%, putting it on track for a four-session winning streak, after inflation in the eurozone rose faster than expected. Consumer prices rose 8.1% year-on-year in May — their fastest past since records began in 1997 — after jumping 7.4% in April. The inflation report is likely to influence the European Central Bank’s decisions on upcoming interest rates. Earlier this month, European Central Bank President Christine Lagarde indicated that the central bank may raise its key interest rate in July. For the first time in 11 years.
Traders worked on the floor of the New York Stock Exchange on Friday.
picture:
Courtney Crowe/Zuma Press
In Asia, the Shanghai Composite Index rose 1.2% after the city government announced a two-month shutdown It will be uploaded on Wednesday. The shutdown, designed to reduce transmission of the Covid-19 virus, has slowed the Chinese economy and increased inflationary pressures elsewhere in the world by manipulating supply chains.
Hong Kong’s Hang Seng is up 1.4%. Japan’s Nikkei 225 index was down 0.3%.
Alex Osipovich contributed to this article.
Write to Caitlin McCabe at [email protected] and Joe Wallace at [email protected]
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