Monday's turbulent session saw gains in the S&P 500 and the Nasdaq due to weak manufacturing sector data and a brief NYSE malfunction that stopped trading several stocks. (Photo : by Michael M. Santiago/Getty Images)
Despite early losses and a brief NYSE malfunction, the S&P 500 and Nasdaq closed higher due to weak manufacturing data, with technology stocks gaining and energy stocks losing.
The NYSE malfunction caused massive fluctuations in shares, notably Berkshire Hathaway and Barrick Gold, halting trading in at least sixty equities until the issue was resolved.
Slowing U.S. industrial activity raised concerns about economic development, leading traders to increase the perceived likelihood of a Fed rate cut in September, with a two-week low reached by benchmark U.S. 10-year note rates.
Monday's turbulent session saw gains in the S&P 500 and the Nasdaq due to weak manufacturing sector data and a brief NYSE malfunction that stopped trading several stocks.
Massive fluctuations in the shares of Berkshire Hathaway (BRKa.N), opens new tab, and an error at the New York Stock Exchange caused Barrick Gold. The volatility caused trading in at least sixty NYSE-listed equities to stop until the exchange resolved the technical problem and trading could resume.
The Dow lost ground, but the benchmark S&P 500 and the Nasdaq closed higher after reducing early losses on the session. The largest gainers were technology companies, while the greatest losers were energy stocks.
Markets had been concerned about slowing economic development after data revealed that U.S. industrial activity had decreased for the second consecutive month.
According to the CME's FedWatch tool, traders now perceive a 59% possibility that the Fed will start reducing rates in September, up from about 53% before to the release of the ISM data. A two-week low was reached by benchmark U.S. 10-year note rates as a result of the weak manufacturing report.
The S&P 500 gained 5.89 points, or 0.11%, to 5,283.40, the Nasdaq Composite gained 93.66 points, or 0.56%, to 16,828.67, and the Dow Jones Industrial Average slid 115.29 points, or 0.30%, to 38,571.03.
The broader trends in these sectors reflect their inherent characteristics and market perceptions. Technology companies, with their innovation-driven growth and relatively lower dependency on raw material costs, have continued to attract investor interest, especially in a low-interest-rate environment. The sector's resilience is also bolstered by ongoing digital transformation across industries, increasing demand for tech solutions.
In contrast, the energy sector's performance has been more volatile, heavily influenced by external factors such as global economic conditions, supply chain disruptions, and regulatory changes aimed at promoting renewable energy sources. This volatility has made energy stocks less attractive to risk-averse investors, contributing to their underperformance in recent months.
Overall, the contrasting fortunes of technology and energy stocks underscore the market's response to current economic signals and the perceived stability and growth potential of different sectors.
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