US stocks were entering Tuesday morning and all three indexes were trading cautiously throughout the night.
Wall Street stocks rallied to close higher on Monday, extending the market’s latest gains as investors await several updates from retailers this week.
The S&P 500 rose 16.99 points, or 0.4%, to 4,297.14 on Monday. The Dow added 151.39 points, or 0.5%, to 33,912.44. The Nasdaq gained 80.87 points, or 0.6%, to 13,128.05. The Russell 2000 rose 4.73 points, or 0.2%, to 2,021.35.
The market got off to a rocky start as traders reacted to news overnight on Sunday that China’s central bank cut a key interest rate, acknowledging that more needs to be done to strengthen its economy.
The move is the latest warning for markets already on edge from record inflation and recession fears in the US and elsewhere. China is the world’s second largest consumer of crude oil, so the news weighed on energy prices.
US crude prices fell 2.9% on concerns about the global economy and weighed heavily on energy stocks.
Nine of the S&P 500’s 11 sectors rose on Monday, with consumer staples and utilities leading gains. Stocks of energy and materials declined with commodity prices.
Stocks have generally recovered since mid-June. Signs that US inflation peaked earlier this summer have investors expecting the Federal Reserve to raise rates at a slower pace from September.
That, in turn, has dragged government bond yields down from highs for the year and given the stock market a boost. The yield on 10-year US Treasuries fell to 2.790% from 2.848% on Friday.
Some investors say the stock has fallen enough this year to make it an attractive buying opportunity again.
The S&P 500 is up 17% since June 16, but remains up 9.8% in 2022.
“When the S&P 500 goes down, there’s a knot in your stomach, but when you’re scared, that’s the right time to buy,” said Peter Boockvar, chief investment adviser at Bleakley Financial Group, which is buying shares of quality
Meanwhile, Asian stocks were mostly higher on Tuesday after Monday’s rally on Wall Street, despite risks to regional investors reflected in negative economic data from China.
The benchmark in Tokyo was little changed, erasing earlier gains, but indexes in South Korea and Australia gained. Hong Kong’s benchmark fell, while Shanghai shares rose.
[ad_2]
Source link
