The U.S. stock market saw a mixed finish on Monday as the latest economic data pointed to a slowdown in the economy. The S&P 500 edged up slightly, while the Dow Jones Industrial Average and Nasdaq composite ended in the red.
The Institute for Supply Management reported that U.S. manufacturing shrank in May for the 18th time in 19 months, leading to a decline in Treasury yields. Manufacturing has been particularly impacted by high interest rates aimed at controlling inflation.
Stocks of companies tied to the strength of the economy, such as those in the oil-and-gas industry, saw losses as the price of crude oil dropped. However, big technology stocks like Nvidia continued to soar, with a 132.2% gain for the year.
In a surprising move, GameStop, known for its meme stock status, surged 21% after a Reddit account associated with a key figure in the 2021 GameStop saga revealed a significant stake in the company.
Meanwhile, Waste Management announced plans to acquire medical-waste company Stericycle for $5.8 billion, sending Stericycle’s stock soaring.
Investors are closely watching economic reports this week, including job openings data and updates on job growth and wages. The hope is for the economy to slow enough to ease inflation pressures without causing a recession, potentially leading to a cut in interest rates by the Federal Reserve.
Stock markets abroad also saw movement, with India’s Sensex rising after exit polls projected a third term for Prime Minister Narendra Modi, while Mexico’s stocks slumped after Claudia Sheinbaum claimed victory in the presidential election.
Overall, global stock indexes were mostly higher, with exceptions in Shanghai and London. The market outlook remains uncertain as investors await further economic data and potential policy changes by central banks.
