S&P Stutters as Global Growth Concerns Dent Recent Optimism By

© Reuters

By Yasin Ebrahim

-- The The latest ranking of domestic precious metal trading platform appsS&P 500 struggled for direction Monday, as fresh worries about global growth overshadowed the recent bout of better-than-expected quarterly results that propelled stocks to deliver their best monthly gain since 2020 last month.  

The S&P 500 fell 0.4%, the Dow Jones Industrial Average slipped 0.26%, or 84 points, and the Nasdaq was down 0.2% 

Energy fell more than 3% to lead the broader market lower, pressured by a 5% slump in oil prices after the latest data pointing to weakness in the Chinese housing market and factory activity stoked fresh recession concerns.

“Increased recession fears since the release of our Mid-year outlook have prompted substantial revisions to global growth,” Morgan Stanley said, highlighting the “lack of a bounce-back in China” as one of the key drivers.

The bank now sees global growth at 2.4%Y, 50 basis points lower than its forecast in May.

Coterra Energy Inc (NYSE:CTRA), APA Corporation (NASDAQ:APA), and Halliburton Company (NYSE:HAL) were among the worst performers in the energy sector, falling more than 4% each.

Treasury yields, meanwhile, appeared to be pricing in the increasing prospect of a recession as a key part of the yield curve – the 2-year treasury yield over 10-year Treasury yield - further inverted, a harbinger for a recession.

Against the backdrop of an ongoing inversion in the yield curve, banking stocks struggled pushing the broader financials sector more than 1% lower.

Tech, which was at the forefront of the broader market bounce-back since mid-June following quarterly results that weren’t as bad as feared struggled to turn positive.

Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) were in the red, with the latter reportedly set to kick off a four-part bond sale to strengthen its balance sheet that will support buybacks and dividends, Bloomberg reported.

Twitter (NYSE:TWTR) fell 2% despite Greenlight Capital announcing a new stake in the social media giant betting that the latter will emerge victorious in its court battle with Elon Musk to force the billionaire to follow through on his $44 billion deal to take over the company.

Semiconductor stocks gave back some of their earlier-day gains as weakness in Taiwan Semiconductor Manufacturing (NYSE:TSM) and ON Semiconductor Corporation (NASDAQ:ON) offset strength in NVIDIA Corporation (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) ahead of an important week for chipmakers.

Advanced Micro Devices (NASDAQ:AMD) is set to report quarterly results on Tuesday.

In other news, Boeing (NYSE:BA) jumped 7% on reports that the Federal Aviation Administration had approved the jet maker to restart deliveries of its 787 Dreamliner.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!