Stocks wavered throughout Monday’s trading session, with the major indices fluctuating around the unchanged line following a mixed performance last Friday.
As it stands, the major indices are exhibiting slight declines. The Dow Jones Industrial Average has fallen 53.68 points, or 0.1%, to 42,259.32. The Nasdaq Composite Index is down 23.29 points, or 0.1%, to 18,096.30, and the S&P 500 has dipped 2.24 points, or less than 0.1%, to 5,735.93.
This indecisive trading on Wall Street reflects traders' hesitation to make substantial moves ahead of Federal Reserve Chair Jerome Powell’s address this afternoon. Powell is scheduled to discuss the economic outlook at the National Association for Business Economics' Annual Meeting at 1 PM ET.
Investors are likely to focus on the Labor Department’s forthcoming monthly jobs report later in the week. Additionally, reports on manufacturing and service sector activity are expected to garner attention.
There is also a sense of uncertainty among traders regarding the market’s near-term direction following a robust performance in September, which is traditionally a weak month for stocks.
In economic updates, MNI Indicators released a report indicating a continued contraction in business activity in the Chicago area for September. The Chicago Business Barometer rose slightly to 46.6 in September from 46.1 in August, yet a reading below 50 still signals contraction. Economists had projected the barometer to edge up to 46.2.
Sector Analysis:
Most major sectors are experiencing only minor changes, contributing to the overall dull performance of the markets.
Gold stocks have experienced a notable decline, with the NYSE Arca Gold Bugs Index plunging by 2.2%. This drop corresponds with a decrease in gold prices.
Semiconductor stocks are also showing significant weakness, as evidenced by the Philadelphia Semiconductor Index's 1.2% loss.
In contrast, airline stocks have surged, propelling the NYSE Arca Airline Index up by 1.1% to a three-month intraday high.
Global Markets:
In overseas trading, Asia-Pacific markets posted a markedly mixed performance on Monday. Japan's Nikkei 225 Index plummeted by 4.8%, while China’s Shanghai Composite Index soared by 8.1%.
Meanwhile, European markets have all moved downward today. France’s CAC 40 Index has dropped by 1.7%, the UK's FTSE 100 Index is down by 0.7%, and Germany’s DAX Index has declined by 0.6%.
In the bond market, treasuries have recovered from their lowest levels but still exhibit modest weakness. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, has increased by 2.6 basis points to 3.775%.