On Monday, Wall Street ended the day lower, after Apple shares declined over a report that the company intends to cut down growth spending and hiring in the next year, while bank stocks trimmed earlier gains.
The S&P financial sector started the session with solid gains after the earnings announcement from Goldman Sachs Group Inc. and Bank of America, but they had weakened by the end of the trading session.
As for shares of Apple Inc., they reversed course and ended the day lower by 2.1% at $147.1. This was after a Bloomberg report said that the company would cut back on its growth spending and slow its hiring in some units next year because of the possibility of a downturn in the economy.
There was a 2.5% gain in Goldman Sachs, as its profit for the second quarter slumped by a smaller-than-expected 48%. This was because its fixed trading income gave the bank a boost.
Interest rate hikes
Last week, the Fed officials remarked that they preferred to stick to an increase of 75 basis points in the interest rate. This eased worries about a super-sized hike of 100 basis points. Market analysts said that sustaining upward momentum in such volatile markets is not so easy. This is a common issue with bear markets.
Investors will be keeping an eye out on earnings in the next week, as big tech companies are up. These will be closely watched because the companies have seen their shares come under a great deal of selling pressure for most of this year. Plus, the US Federal Reserve’s policy meeting will also be the focus, as it will finally give confirmation about the interest rate hike and eliminate some of the uncertainty that seems to be plaguing markets.
There was a 0.69% drop in the Dow Jones Industrial Average, which brought it lower by 215.65 points to end the session at 31,072.61. A 0.84% decline in the S&P 500 was also recorded, which saw it fall by 32.31 points to end the day at 3,830.85. Lastly, the Nasdaq Composite suffered a loss of 0.81%, which saw it lose 92.37 points to finish at 11,360.05.
Out of the 11 sectors of the S&P 500, nine of them were in the negative, with utilities and healthcare recording the largest percentage drop, while the biggest gain was seen in energy stocks. As for tech stocks, there was a 1.3% drop in IBM, while a 2.5% fall was also seen in Google parent Alphabet.
There was also a lower trading volume recorded on US exchanges, as it came down to 10.63 billion. In comparison, the average volume for the full trading session in the last 20 days had been around 12.15 billion. There was only one 52-week high in the S&P 500, while new lows were around 31. As for the Nasdaq Composite, it saw 78 new lows and 30 new highs.