By Yasin Ebrahim
Investing.com – The S&P 500 cut losses and hit an all-time high on Monday
The increase rose 0.1% to a new record high of 4,475.05 intraday. The Nasdaq gained 0.2% or 56 points and the Nasdaq lost 0.26%.
Energy fell more than 1% dragging the broader market down as oil prices collapsed on demand concerns after weaker economic data from China raised concerns about the global recovery.
“In the short term, concerns about the spread of the Delta variant in China and its effects on oil demand continue to weigh on prices,” says a press release from Commerzbank (DE :). “These concerns were further fueled by the data released overnight in China: industrial production turned out to be significantly weaker than expected.”
Another sign of slowing growth, the Empire State Index fell from 43.0 in July to 18.3 in August, missing the economists’ estimate of 28.5.
Government bond yields fell on global growth worries, dragging bank stocks sharply down. Falling interest rates are the banks’ enemy as they reduce their net interest margin.
JPMorgan (NYSE :), Goldman Sachs (NYSE 🙂 and Bank of America (NYSE 🙂 were down less than 1%.
However, given the resilient labor market and the expected tightening of monetary policy from the Federal Reserve, yields are not expected to decline over a long period of time.
“We do not lose confidence in our view that US Treasury bond yields and the US dollar will rise. The strength of the labor market and a strong wealth effect should prevent the same loss of confidence in other household metrics that the University of Michigan survey found. ” Morgan Stanley (NYSE 🙂 said in a note, adding that the “Fed Taper” [is] on tap. “
Industrials were above the bottom, however, as defense companies such as Parker-Hannifin (NYSE :), L3Harris Technologies (NYSE 🙂 and Leidos (NYSE 🙂 climbed.
Technology stocks, which often benefit from falling returns, rose slightly as megacap tech tended to be higher.
Microsoft (NASDAQ :, Facebook (NASDAQ 🙂 and Apple (NASDAQ :), Google parent Alphabet (NASDAQ 🙂 were in the green, while Amazon.com (NASDAQ 🙂 was flat.
Sonos (NASDAQ :), meanwhile, rose 7% after a winning judge ruled that Alphabet’s Google infringed some of the company’s patents. An important ban could be imposed on some of Google’s Pixel smartphones and Nest audio speakers.
On earnings news, oat milk producer Oatly (NASDAQ 🙂 reported quarterly results that fell short of Wall Street estimates in both sales and bottom line. The company also announced plans to increase production of oat base, citing increased demand. The share price had fallen about 3%.
In other news, Tesla (NASDAQ 🙂 fell more than 4% after the US government launched an investigation into the electric car maker’s safe driver assistance system after multiple accidents over the past three years.