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NEW YORK – Stocks closed lower on Wall Street as traders returned from the long holiday weekend. The S&P 500 fell 0.4% on Tuesday. The index is coming on its second weekly gain. The Dow declined 0.6% and the Nasdaq shed 0.1%. Crude oil prices increased. The market is anticipating a quieter week, with company earnings reports down and government economic reports including data on manufacturing, layoffs and business expected. DocuSign, GameStop, Dave & Buster’s and Kroger are set to report their most recent quarterly financial results this week.
This is a breaking news update. Below is the AP’s previous story.
Shares fell on Wall Street in afternoon trading on Tuesday as traders returned from a long holiday weekend to face a relatively quiet week.
The S&P 500 fell 0.2%. The index is coming on its second weekly gain. The Dow Jones Industrial Average was down 95 points, or 0.3%, at 34,741 as of 2:55 p.m. Eastern. The Nasdaq was up 0.1%.
Markets in the US were closed on Monday for the Labor Day holiday.
Industrial stocks have suffered the most. Union Pacific fell 2.1%. Technology stocks were up. Microsoft climbed 1.6%.
Crude prices rose as well as energy stocks after Saudi Arabia and Russia said they would extend voluntary oil production cuts by 1 million barrels per day until the end of the year. US crude prices rose 1.3% and Chevron rose 1.4%.
Investors await some economic reports this week and the latest round of corporate earnings is essentially over.
“Nothing is driving investors other than doing the mental math on whether the Federal Reserve will continue to raise interest rates,” said Sam Stovall, chief investment strategist at CFRA.
The Supply Management Institute released its latest report on the US services sector on Wednesday. The service sector employs the majority of Americans and is a large component of the economy. Its health may provide more insight into how inflation is affecting consumer spending.
Wall Street will also get updates on aspects of the manufacturing sector and consumer credit. DocuSign, GameStop, Dave & Buster’s and Kroger are set to report their most recent quarterly financial results this week.
Last week, investors were busy reviewing a slew of economic data as they tried to get a better picture of the economy. Most reports have fueled hopes that the Fed may reduce interest rate hikes to fight inflation, which has been declining for months.
Bond yields rose on Tuesday. The yield on the 10-year Treasury, which affects interest rates on mortgages and other loans, rose to 4.26% from 4.18% late Friday. The yield on the 2-year Treasury, which tracks expectations for the Fed, rose to 4.95% from 4.88%.
Wall Street expects the Fed to hold its benchmark interest rate steady at its next meeting in September, as it did at its last meeting. Investors are mostly betting that the central bank will maintain that pause through the rest of the year.
The central bank has aggressively raised its key interest rate through 2022 to the highest level since 2001. The goal is to bring inflation back to the Fed’s target of 2%. Many measures of inflation have reached close to that target and the economy is still growing. This eased concerns about aggressive rate hikes pushing the economy into recession.
Analysts are still worried about the potential for a recession, but those concerns have eased as inflation eases and the economy remains resilient.
Markets in Europe and Asia were mixed. Hong Kong’s benchmark fell 2.1% as investors sold real estate shares, which have recently risen following government efforts to support the ailing industry.
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Ellen Kurtenbach and Matt Ott contributed to this report.
Damian J. Trois and Alex Veiga, The Associated Press
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