Stocks wobble as traders struggle to build on last week’s comeback: Live updates
A trader works on the floor of the New York Stock Exchange.
NYSE
Stocks whipsawed on Monday as investors looked ahead to key inflation data.
The S&P 500 added 0.4% while the Nasdaq Composite advanced 0.4%. Shares of Nvidia advanced 5% to help the technology heavy index’s climb. The Dow Jones Industrial Average pulled back 57 points, or 0.1%.
The forthcoming batch of inflation data will be key for markets that remain jittery following increased volatility. Wednesday’s consumer price index report for July will be a pivotal cue as to whether the economy remains sound, or if investors will remain uneasy following July’s weak nonfarm payrolls report which contributed to the recent sell-off.
“We are optimistic that a short-term bottom was put in place, or came close to being put in place, on August 5th, when the S&P 500 closed down 8.5% from peak (within the range of a normal/healthy pullback of 5-10%) and important technical support levels [were] held,” RBC Capital Markets head of global equity strategy research Lori Calvasina wrote on Monday. “But we remain on guard for choppy conditions to persist for a while longer and don’t rule out a growth scare if economic data releases continue to disappoint.”
On Friday, all of the major averages rose to end the week but stopped just shy of a full recovery. The Dow finished the week lower by 0.6%, while the S&P 500 ended down just 0.04%, and the tech-heavy Nasdaq Composite finished with a 0.18% loss. Wall Street began last week with a sharp sell-off on growing concern of a U.S. economic growth slowdown.
“Emotions are high and market swings tend to cluster together, so I wouldn’t be shocked if we get another week of turbulence,” Callie Cox, chief market strategist at Ritholtz Wealth Management, told CNBC. “People are beginning to brace for a recession even though a crisis hasn’t materialized. Fear often works in our favor as stock market investors. More relief rallies look possible if economic data holds up, and rate-sensitive sectors could continue to lead the market higher.”
Wall Street is also watching for the July producer price index report on Tuesday. July retail sales are also due out Thursday.
