US Stock Market: After worst day in 2-1/2 months, S&P 500 set for muted opening today?
The US stock market is expected to make a lackluster start to the day on Tuesday, following a particularly gloomy day on Monday, as growing worries over global trade tensions and a decline in manufacturing activity weighed on investor sentiments.
What’s moving the markets?
Monday saw the S&P 500, one of the two main US stock market blue chips, log its worst single-day fall in two-and-a-half months, following the news of the onset of 25% tariffs on Canada and Mexico, while an unfavorable monthly manufacturing production reading also had an adverse impact on the market sentiment.
Just how bad was the market performance?
At the end of Monday’s trading, the Dow Jones Industrial Average (DJIA) dropped 649.7 points, or 1.5%, to finish at 43,191.2, while the S&P 500 shed 104.8 points, or 1.8%, to close at 5,849.7. The tech-heavy Nasdaq Composite, on the other hand, fell 497.1 points, or 2.6%, to 18,350.2.
Top gainers and losers on Monday
Here’s a look at some of the top gainers and losers on Monday’s session:
| Stock | Monday’s Close ($) | Change (%) |
|---|---|---|
| NVIDIA Corp | 114.1 | -8.7 |
| Chevron Corp | 153.1 | -3.5 |
| Caterpillar Inc | 332.0 | -3.5 |
| Amazon.com Inc | 205.0 | -3.4 |
| Procter & Gamble Co | 175.6 | 1.0 |
| Johnson & Johnson | 167.3 | 1.4 |
| Coca-Cola Co | 72.3 | 1.6 |
| Verizon Communications Inc | 64.5 | 1.9 |
What to expect today?
As the markets edge closer to opening bell, investors are likely to digest the heavy losses from Monday and assess the impact of the trade tensions and manufacturing production figures on the broader market. The S&P 500, which is expected to open tad higher, may experience a muted start to the day, with some analysts predicting a cautious approach by investors due to the ongoing uncertainty surrounding global trade and the possibility of further market volatility.
Why is volatility a concern?
The rise in market volatility in recent times has heightened concerns among investors, with many experts warning that the uncertainty surrounding global trade tensions and the potential for further market volatility could lead to a prolonged downturn in the markets. As a result, investors are advised to adopt a cautious approach, hedging their bets against potential losses and focusing on select, robust stocks that can weather the storm.
Will the S&P 500 see a rebound?
While the S&P 500 is expected to open flat, it remains to be seen whether the index can sustain a rally in the days ahead. The market’s performance will be closely watched, with many experts forecasting a possible rebound in the coming days, fueled by a more stable global economic landscape and positive earnings growth. However, until then, the S&P 500, and the broader markets, are likely to experience intense volatility.
Conclusion
The US stock market is set for a lackluster start on Tuesday, following a particularly tumultuous day on Monday, when growing concerns over global trade tensions and a decline in manufacturing activity weighed on investor sentiments. While the S&P 500 is expected to open tad higher, the market’s performance will be closely watched, with many experts forecasting a possible rebound in the coming days, fueled by a more stable global economic landscape and positive earnings growth.
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