Dow could snap its four-day win streak


The Dow and the broader stock market are headed lower. Investors’ sentiment soured after US tariffs on Chinese imports came into effect over the weekend. Fresh concerns about Brexit are also keeping global markets lower.

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

The Dow and US stocks slipped in another sluggish session as investors are awaiting inflation data and the European Central Bank’s policy update later in the week.

US stock were lower across the board, with the Dow falling more than 70 points, or 0.3%. The index would snap a four-day win streak should it end the day in negative territory. The S&P 500 was down 0.5% and the Nasdaq Composite was down 0.7%.

European indexes are also mostly trading in the red, and Asian markets closed mixed, with Chinese stock exchanges in the red, after China reported August consumer price inflation of 2.8%. The producer price index fell 0.8%, slightly less than expected, on the back of weaker demand.

The 10-year Treasury yield continues to edge higher at 1.671%.

“Despite the weak data that bookended last week, US yields bounced off the low end of their recent range,” wrote Credit Suisse trading strategist Jonathan Cohn in a note to clients.

Drivers of the move in yields include the next round of US-China trade talks, a perceived lower likelihood of a no-deal Brexit, as well as some improving economic data and new bond issuance exceeding expectations.

“While we continue to think US yields will trend lower for the remainder of the year, the next few weeks may offer a period of further consolidation as optimism on potential trade progress trumps better judgment earned through recent experience,” Cohn said.

The economic calendar is once again light in the United States. The small business optimism index from the National Federation of Independent Business was lower than expected at 103.1 in August, which was its lowest level since March.

US job openings for July came in just below expectations, edging down from the previous month. Still, for now, open jobs outnumber unemployed workers.

“Employer’s demand for workers in the US labor market continues to slow down. Last week’s jobs report sparked a debate over whether the slowdown in hiring is due to an economy hitting full employment, but today’s JOLTS report indicates that this is actually a labor market that is losing momentum,” said Nick Bunker, economist at Indeed Hiring Lab, in emailed comments.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trademark and Copyright 2021 Cable News Network, Inc., a Time Warner Company. All rights reserved.


Latest News

More News