Dow, S&P 500 end lower Monday, kick off August under cloud of potential recession

44623 dow sp 500 end lower monday kick off august under cloud of potential recession

U.S. stocks finished lower Monday, kicking off August on a downbeat note, after a strong July rally carried the main equity benchmarks to their best month of gains in almost two years. The Dow Jones Industrial Average DJIA, -0.14% shed about 45 points, or 0.1%, to end the session near 32,799. The S&P 500 index SPX, -0.28% lost 0.3%, while the Nasdaq Composite Index COMP, -0.18% closed 0.2% lower. The month of August kicked off under a series of unknowns, including whether investors betting on the Federal Reserve to “pivot” away from its aggressive rate-hiking stance to quell inflation at its sharpest in four-decade might be risking further losses, as both the equity and debt markets aim to turn the page on a painful first half of 2022. Another big question looming over markets has been whether parts of the bond market and commodity complex may be signaling that a recession looms, despite vows by Fed Chairman Jerome Powell to battle inflation, while aiming to steer the economy to a soft landing. The 10-year Treasury yield continued to retreat Monday to about 2.605%, down from its peak 3.482% yield so far this year on June 14, according to Dow Jones Market Data. Those questions, including if the strong U.S. labor market can help the economy avoid a recession, will keep Friday’s job report from July in focus.

Source: Marketwatch

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