NEW YORK — Shares ended a shaky day of trading on Wall Street mostly lower on Monday, extending a losing streak for markets.
The broader market is in the midst of a slump as investors try to gauge how businesses and consumers are coping with higher prices and whether central banks can help fix the problem. The major indices have slipped since early April.
“Time is of the essence here,” said Mark Hackett, head of investment research at Nationwide. “Right now, vibes and emotions are winning, but eventually the reality of a generally good backdrop will take over.”
Corporate earnings have been mostly good, he said, and consumer spending is holding up amid inflationary pressures. But the market is likely to remain volatile and could suffer further losses until some inflation concerns ease.
The S&P 500 fell 15.88 points, or 0.4%, to 4,008.01. The benchmark index is coming off a six-week dry spell. The Dow Jones Industrial Average gained, rising 26.76 points, or 0.1%, to 32,223.42.
The tech-heavy Nasdaq took a sharp tumble. It fell 142.21 points, or 1.2%, to 11,662.79.
Technology stocks were among the biggest losers after pushing and dragging the market throughout the day. Apple fell 1.1%. With their expensive assets, big tech companies tend to push the broader market both up and down. The sector was particularly heavyweight as investors worried about high inflation and rising interest rates.
Retailers also had some of the biggest losses. Amazon slipped 2% and Starbucks fell 4.2%.
Energy stocks and healthcare companies gained ground. Chevron was up 3.1% and Eli Lilly was up 2.7%.
Bond yields fell. The yield on the 10-year Treasury fell to 2.89% from 2.94% late Friday.
Spirit Airlines rose 13.5% after JetBlue said it would make a hostile bid for the low-cost carrier after Spirit rejected its previous bids.
Defense conglomerate ManTech rose 15% after investment firm Carlyle Group announced it would buy the defense conglomerate.
The Federal Reserve is in the process of pulling its short-term benchmark interest rate from its near-zero record low, where it has spent most of the pandemic. It also said it could continue to hike rates by twice the usual amount at forthcoming meetings. Investors fear that the central bank could trigger a recession if it hikes rates too high or too quickly.
Ongoing supply chain problems continue to feed inflation, and China’s recent COVID-19 lockdowns have raised concerns that they could be getting worse. Russia’s war against Ukraine has added volatility to already high energy prices, which could also delay rising inflation.
U.S. crude prices rose 3.4% on Monday and are up more than 50% for the year. Natural gas prices rose 3.8% and more than doubled in 2022.
Wall Street is closely monitoring how consumers are reacting to inflationary pressures and will have several updates from the US government and key retailers this week. The Commerce Department is due to release its retail sales report for April on Tuesday.
Home Depot and Walmart will release their latest financial results on Tuesday, and Target will release its results on Wednesday.
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