- Trade concerns continue to cast a shadow over markets.
- Energy sector makes a deep correction.
- Technology shares’ performance lifts Nasdaq higher.
Pressured by the dismal performance of European indices and ongoing concerns over Trump administration’s trade policy, major equity indexes in the United States started the day lower and remained in the red before making a late recovery.
Earlier today, the U.S. Commerce Secretary Wilbur Ross said that President Trump wouldn’t back down from his stance on trade even is stock markets continued to fall. After the July 4th break, investors will be focusing on the July 6 deadline for $34 billion worth of tariffs on Chinese imports. “These tit-for-tat trade tariffs will ultimately raise prices for consumers, and will likely dampen demand for products,” Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors in Chicago, told Reuters.
Meanwhile, crude oil’s rally took a break on Monday with the barrel of West Texas Intermediate easing below the $74 mark. This price action allowed the S&P 500 Energy Sector (SPNY), which outperformed all the other major sectors last week, to make a deep correction and close the day 1.55% lower.
On the other hand, robust gains witnessed in tech giants Apple and Microsoft shares helped the S&P 500 Information Technology Sector (SPLRCT) erase a portion of its recent gains and end the day with a 1% gain.
At the end of the day, the Dow Jones Industrial Average was up 35.77 points, or 0.15%, at 24,307.1 and the S&P 500 added 8.34 points, or 0.31%, to 2,726.71. The tech-heavy Nasdaq Composite Nasdaq closed 57.38 points, or 0.76%, higher at 7,567.69.
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