New York: wall StreetThree major indices closed lower on Tuesday after a rally last week, as volatile oil markets kept inflation in check and investors reacted to sharp comments from one. federal Reserve Officer.
After outperforming earlier in the session, the S&P’s energy sector lost ground following a report that some producers were exploring the idea of suspending Russia’s participation in the OPEC+ production deal.
Federal Reserve policy was also top of mind for investors as US president Joe Biden And Fed Chairman Jerome Powell met on Tuesday to discuss inflation, which Biden called his “top priority” ahead of the meeting.
It was said by Fed Governor Christopher Waller on Monday that the US central bank should be prepared to raise half a percentage point in every meeting from now until inflation is decisively curbed.
“The market is trying to figure out the endgame for the Fed,” said Jack Janasiewicz, portfolio manager at Natixis Investment Management Solutions.
And while lower commodity prices will be good news for equities in the long term, the impact of reports about OPEC and Russia on the energy sector may have slightly shaken the broader market on Tuesday.
“It’s the kind of thing whose market is on the edge,” Jansiewicz said. “When we started, the area that was driving us up was the energy.”
By the end of the session, the biggest drop among the S&P’s 11 key industry sectors was energy, down 1.6%.
The only sector beneficiary was consumer discretionary, up 0.8%, with Amazon.com the S&P’s biggest boost from the same stock on the day, and communications services up 0.4%, as Google S&P’s next-best. was a big contributor.
Dow Jones Industrial Average Down 222.84 points, or 0.67%, at 32,990.12, the S&P 500 fell 26.09 points, or 0.63%, to 4,132.15, and the Nasdaq Composite fell 49.74 points, or 0.41%, to 12,081.39.
All three indices rallied last week to break a decade-long losing streak.
As with Tuesday’s decline, the S&P and Dow were essentially unchanged for May. The Nasdaq showed a monthly decline of 2%.
“There are a lot of concerns at the moment for a sharp V-bottom in the market, which sees equity trading sideways for some time due to uncertainties including Russia-Ukraine,” said Carol Schlef, deputy chief investment officer at the BMO Family Office. War, the global economy and inflation, as well as Fed policy.
“One piece of this is energy prices because on the margins they really affect people’s spending habits. People are actually looking at higher prices at the grocery store,” she said.
Earlier in the day, data showed US consumer confidence eased marginally in May amid persistently high inflation and rising rates, while a separate reading showed US home price growth unexpectedly warmed to record levels in March .
Other key data due this week is monthly non-farm payroll numbers for signals on the labor market.
US-listed shares of Yamana Gold Inc climbed 3.7% after South African miner Gold Fields Ltd agreed to buy the Canadian miner in a $6.7 billion all-share deal.
Dexcom Inc. closed 3% after a glucose monitoring system maker denied a report on merger talks with insulin pump maker Insulet Corp.
The number of declining issues is greater than those going forward NYSE by a 1.82-to-1 ratio; On the Nasdaq, a 1.44-to-1 ratio favored the decline.
The S&P 500 posted four new 52-week highs and 29 new lows; The Nasdaq Composite posted 53 new highs and 58 new lows.
15.52 billion shares changed hands on US exchanges on Tuesday, compared to the 20-day moving average of 13.25 billion.
After outperforming earlier in the session, the S&P’s energy sector lost ground following a report that some producers were exploring the idea of suspending Russia’s participation in the OPEC+ production deal.
Federal Reserve policy was also top of mind for investors as US president Joe Biden And Fed Chairman Jerome Powell met on Tuesday to discuss inflation, which Biden called his “top priority” ahead of the meeting.
It was said by Fed Governor Christopher Waller on Monday that the US central bank should be prepared to raise half a percentage point in every meeting from now until inflation is decisively curbed.
“The market is trying to figure out the endgame for the Fed,” said Jack Janasiewicz, portfolio manager at Natixis Investment Management Solutions.
And while lower commodity prices will be good news for equities in the long term, the impact of reports about OPEC and Russia on the energy sector may have slightly shaken the broader market on Tuesday.
“It’s the kind of thing whose market is on the edge,” Jansiewicz said. “When we started, the area that was driving us up was the energy.”
By the end of the session, the biggest drop among the S&P’s 11 key industry sectors was energy, down 1.6%.
The only sector beneficiary was consumer discretionary, up 0.8%, with Amazon.com the S&P’s biggest boost from the same stock on the day, and communications services up 0.4%, as Google S&P’s next-best. was a big contributor.
Dow Jones Industrial Average Down 222.84 points, or 0.67%, at 32,990.12, the S&P 500 fell 26.09 points, or 0.63%, to 4,132.15, and the Nasdaq Composite fell 49.74 points, or 0.41%, to 12,081.39.
All three indices rallied last week to break a decade-long losing streak.
As with Tuesday’s decline, the S&P and Dow were essentially unchanged for May. The Nasdaq showed a monthly decline of 2%.
“There are a lot of concerns at the moment for a sharp V-bottom in the market, which sees equity trading sideways for some time due to uncertainties including Russia-Ukraine,” said Carol Schlef, deputy chief investment officer at the BMO Family Office. War, the global economy and inflation, as well as Fed policy.
“One piece of this is energy prices because on the margins they really affect people’s spending habits. People are actually looking at higher prices at the grocery store,” she said.
Earlier in the day, data showed US consumer confidence eased marginally in May amid persistently high inflation and rising rates, while a separate reading showed US home price growth unexpectedly warmed to record levels in March .
Other key data due this week is monthly non-farm payroll numbers for signals on the labor market.
US-listed shares of Yamana Gold Inc climbed 3.7% after South African miner Gold Fields Ltd agreed to buy the Canadian miner in a $6.7 billion all-share deal.
Dexcom Inc. closed 3% after a glucose monitoring system maker denied a report on merger talks with insulin pump maker Insulet Corp.
The number of declining issues is greater than those going forward NYSE by a 1.82-to-1 ratio; On the Nasdaq, a 1.44-to-1 ratio favored the decline.
The S&P 500 posted four new 52-week highs and 29 new lows; The Nasdaq Composite posted 53 new highs and 58 new lows.
15.52 billion shares changed hands on US exchanges on Tuesday, compared to the 20-day moving average of 13.25 billion.