Search
  • The San Juan Daily Star

Growth stocks drag Nasdaq lower, energy shares bounce

The Nasdaq Composite index fell by noon buying and selling on Monday, dragged down by high-growth stocks as final week’s rally on easing issues over inflation misplaced steam, whereas recovering oil costs boosted shares of energy companies.


“We had a pleasant rally final week, so I feel we’re seeing a little bit little bit of revenue taking this morning,” mentioned Dennis Dick, a proprietary dealer at Bright Trading LLC in Las Vegas.


“The stocks that have been up probably the most final week are those getting hit the toughest right here as we speak.”


The tech-heavy Nasdaq Composite (.IXIC) index, which gained 7.5% final week, fell 0.3%, the one decliner among the many three main indexes.


Investors have been betting on the retreat in oil costs from the three-month highs hit in June to probably ease inflationary pressures and certain push the US Federal Reserve to average its aggressive coverage tightening.


Data on Monday confirmed new orders for US-made capital items and shipments elevated solidly in May, pointing to sustained energy in enterprise spending on tools within the second quarter. learn extra


Oil costs additionally moved again into constructive territory, pushing up the S&P 500 energy index (.SPNY) by 2.5%, reining in expectations for inflation falling on the again of decrease energy costs.


The US central financial institution has quickly raised rates of interest to tame 40-year-high inflation, stoking fears its actions might tip the world’s largest financial system right into a recession.


The benchmark S&P 500 (.SPX) index earlier this month recorded a 20% drop from its January closing peak to substantiate a bear market.


For the quarter, the S&P 500 and the Dow Jones Industrial Average (.DJI) have been headed for the second straight quarterly declines for the primary time because the second and third quarter of 2015.


“We suppose they’ve hit a backside for the quarter,” mentioned Jay Hatfield, chief funding officer at Infrastructure Capital Management in New York.


“June is generally a weak month as a result of what occurs is there are only a few earnings stories. So we predict we have now hit the lows by June.”


At 12:15 pm ET the Dow Jones Industrial Average (.DJI) was up 16.97 factors, or 0.05%, at 31,517.65, the S&P 500 (.SPX) was up 9.75 factors, or 0.25%, at 3,921.49, and the Nasdaq Composite (.IXIC) was down 39.09 factors, or 0.34%, at 11,568.53.


Shares of Robinhood Markets Inc (HOOD.O) rose 3.3% after Goldman Sachs upgraded the retail dealer’s inventory to “impartial” from “promote”.


Goldman Sachs, nonetheless, lower its score on Coinbase Global Inc (COIN.O) to “promote” from “purchase”, sending shares of the cryptocurrency change decrease by 8.7%.


Advancing points outnumbered decliners for a 1.69-to-1 ratio on the NYSE and a 1.08-to-1 ratio on the Nasdaq.


The S&P index recorded one new 52-week excessive and 29 new lows, whereas the Nasdaq recorded 21 new highs and 59 new lows.

8 views0 comments

Recent Posts

See All

The S&P 500 (.SPX) fell to its lowest level in almost two years on Tuesday on worries about super aggressive Federal Reserve policy tightening, trading under its old 2022 low from June and leaving inv