Wall Street slips at the start of a week full of economic updates
World
Wall Street slips at the start of a week full of economic updates
NEW YORK (AP) — U.S. stocks are sinking Tuesday ahead of a week full of updates on the economy’s strength.
The S&P 500 was 0.7% lower in early trading, coming off a winning week that had carried it to the cusp of its all-time high. The Dow Jones Industrial Average was down 167 points, or 0.4%, from its own record set on Friday before Monday’s Labor Day holiday. The Nasdaq composite was 1.1% lower, as of 9:35 a.m. Eastern time.
Treasury yields were also sinking in the bond market ahead of a report coming later in the morning on U.S. manufacturing. It’s been one of the economy’s areas hit hardest by high interest rates and has been contracting for most of the last two years.
Worries about a slowing U.S. economy helped send stocks on a scary summertime swoon early last month, but financial markets rebounded on hopes that the Federal Reserve could pull off a perfect landing for the economy. After jacking its main interest rate to a two-decade high in hopes of slowing the economy enough to stifle high inflation, the Fed looks set to ease interest rates later this month in hopes of avoiding a recession.
Other reports later this week that could show how much help the economy needs include updates on the number of job openings U.S. employers were advertising at the end of July and how strong U.S. services businesses grew last month. The week’s highlight will likely arrive on Friday, when a report will show how many jobs U.S. employers created during August.
On Wall Street, U.S. Steel fell 4.2% in its first trading after Vice President Kamala Harris told a crowd in Pennsylvania on Monday that she opposed the company’s planned sale to Japan’s Nippon Steel. The Democratic presidential nominee’s comments, which echo President Joe Biden’s position, came after Nippon Steel Corp. said last week it would spend an additional $1.3 billion to upgrade facilities in Pennsylvania and Indiana, on top of a previous $1.4 billion commitment.
Nippon Steel also reiterated that it expects the transaction to close in the second half of 2024, despite ongoing political and labor opposition.
Nvidia was the heaviest weight by far on the S&P 500 after falling 4.8%. Its stock has been struggling even after the chip company topped high expectations for its latest profit report. The performance could bolster criticism that Nvidia’s and other Big Tech stocks simply soared too high amid Wall Street’s rush into artificial-intelligence technology.
In the bond market, the yield on the 10-year Treasury fell to 3.84% from 3.91% late Friday. That’s down from 4.70% in late April, a significant move for the bond market.
In stock markets abroad, indexes were modestly lower across much of Europe and Asia.
Worries were also growing about the resilience of China’s economy, as recently disclosed data showed a mixed picture. Weak earnings reports from Chinese companies, including property developer and investor New World Development Co., added to the pessimism.
