Stocks saw a decline in early trading on Wall Street this Tuesday as traders returned from an extended holiday weekend to face a relatively uneventful week.
The S&P 500 experienced a marginal drop of 0.3%. This comes after the index secured its second consecutive weekly gain. The Dow Jones Industrial Average slid by 82 points, equivalent to a 0.2% decrease, settling at 34,756 as of 10:13 a.m. Eastern Time. Meanwhile, the Nasdaq witnessed a 0.4% dip.
The U.S. markets remained closed on Monday in observance of the Labor Day holiday.
The day offered little in terms of noteworthy corporate news for investors to focus on. Notably, technology and industrial stocks took a hit. Advanced Micro Devices witnessed a decline of 2.1%, while Union Pacific slipped by 1.8%.
On a more positive note, energy stocks made gains, in tandem with the rising crude oil prices. This boost was fueled by Saudi Arabia’s announcement that it would extend its voluntary production cut of 1 million barrels of oil per day through the year’s end. U.S. crude oil prices saw a 2% increase, and Exxon Mobil enjoyed a 1.6% rise.
Across the globe, markets in Europe and Asia presented a mixed picture. Hong Kong’s benchmark index experienced a 2.1% fall, primarily due to investors shedding real estate shares, which had recently appreciated following government efforts to bolster the struggling industry.
Investors have a limited number of economic reports to anticipate this week, as the latest round of corporate earnings draws to a close.
The Institute for Supply Management is scheduled to release its latest report on the U.S. services sector on Wednesday. The services sector is the largest employer in the U.S. and a significant component of the economy. Its performance will offer valuable insights into how inflation is impacting consumer spending.
Wall Street will also receive updates on various aspects of the manufacturing sector and consumer credit. Furthermore, companies such as DocuSign, GameStop, Dave & Buster, and Kroger are set to unveil their most recent quarterly financial results this week.
Last week, investors were preoccupied with analyzing an extensive array of economic data, seeking a clearer understanding of the economy. Much of this data raised hopes that the Federal Reserve might consider moderating interest rate increases to counter inflation, which has been on a gradual decline.
Bond yields experienced an increase, with the 10-year Treasury yield rising to 4.25% from 4.18% late Friday. Similarly, the 2-year Treasury yield, which tracks expectations regarding the Fed’s actions, rose to 4.92% from 4.88%.
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Author Faith Yakubu 
