US: Wall Street ends mixed as volatility resumes

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US: Wall Street ends mixed as volatility resumes

[NEW YORK] Another volatile day of trading on Monday saw major Wall Street indices extending losses at the start of an earnings-heavy week.

Early good cheer from stock market gains in China and a Moody’s decision on Italian debt quickly faded, as energy and financial stocks fell but battered tech stocks rose.

The benchmark Dow Jones Industrial Average fell 0.5 per cent to end the day at 25,317.61, erasing the meagre gains from Friday.

The S&P 500 fell 0.4 per cent to close at 2,755.88, but the Nasdaq gained 0.3 per cent, rising to 7,468.63.

Peter Cardillo of Spartan Capital told AFP geopolitical worries and the looming US congressional elections were making for rough seas.

“The situation with Saudi Arabia could be a problem,” he said, referring to diplomatic controversy over the killing of journalist Jamal Khashoggi in Turkey.

“And as the mid-term elections approach it also causes uncertainties.”

Lower crude prices drove oil-tied stocks down. Exxon Mobil fell one percent while fellow supermajor Chevron gave up 0.8 per cent.

Falling yields on short-term US Treasuries did little to help financials: American Express dropped two percent and investment bank Goldman Sachs sank 2.4 per cent.

Tech stocks, however, had a comparatively better day, with investors anticipating earnings releases over the next two weeks.

Retail giant Amazon rose 1.4 per cent and Google-parent Alphabet gained 0.4 per cent. Both companies are due to report earnings after the close on Thursday.

Source: https://www.businesstimes.com.sg/stocks/us-wall-street-ends-mixed-as-volatility-resumes