At the stock market on Monday, the Dow Jones Industrial Average gave up some of its earlier gains, closing 97 points lower. The S&P index erased an early gain, while technology companies maintained a modest rise that pushed the Nasdaq into profit.
Stock futures gained modestly in early morning trading on Tuesday, following a Monday sell-off on Wall Street due to concerns about slowing growth, SolarEdge being one of the biggest movers overnight. As crude oil prices and Treasury rates fell dramatically on concerns of slowing economic growth, the stock market surge was wiped out.
The outbreak of the delta coronavirus variety had investors on the edge of their seats. According to data published by the Centers for Disease Control and Prevention, the seven-day average of daily coronavirus infections in the United States hit 72,790 on Friday, exceeding the record seen last summer when the country lacked an authorized Covid-19 vaccine.
Treasury rates fell on Monday as investors worried about slowing growth. The yield on the benchmark 10-year Treasury note fell to 1.15%, down 8 basis points. Bond rates fell on Monday as statistics showed that the manufacturing sector in the United States expanded at a slower pace than a month before.
Investors are keeping a close eye on developments in Washington as legislators work toward a bipartisan infrastructure plan that would invest $550 billion in the US. Senate Majority Leader, Chuck Schumer wants to have the 2,702-page bill passed before the chamber’s month-long break begins on August 9.
Quick market analysis
During afternoon trading, the Nasdaq rose by less than 0.1% as Tesla topped the index’s best performers. Meanwhile, the S&P 500 index dropped 0.2%. The Dow Jones industrial average dropped 0.3%, behind the other main indices. The Russell 2000 index of small-cap stocks was down around 0.5%. According to early statistics, volume was higher on the Nasdaq and lower on the NYSE compared to Friday’s closing.
Nike (NKE) and Goldman Sachs (GS) were among the Dow Jones’ top performers on Monday, rising 0.7 percent and 0.9 percent, respectively. The stock of Goldman Sachs is trading near its 50-day moving average and is forming a flat base with a purchase point of 393.36. The stock is roughly 3% away from the entry point.
In other news, Nike shares soared to a new high of 169.98 early Monday before retreating to a 0.7 percent gain in afternoon trade. The stock is currently extended from a consolidation buy point of 148.05.