Investors are watching the US economy closely after an Institute for Supply Management manufacturing report missed estimates, fueling concerns about growth and sticky inflation. The Dow Jones Industrial Average dropped 75 points, or 0.2%, while the S&P 500 fell 0.2% and the Nasdaq Composite declined 0.5%. The small-cap Russell 2000 also fell 0.2%.
The manufacturing index is seen as a key indicator of economic health, and its decline has sparked worries about U.S.-imposed tariffs on Canada, Mexico, and China. President Trump’s plan to impose 25% tariffs on imports from these countries could affect the oil market, with gasoline prices already declining for a second week.
The US average price for gasoline fell to $3.04 a gallon Monday, down 3.8 cents from last week. Analysts say U.S. refineries process more oil than the country produces, making it challenging to predict future trends in gas prices.
Other economic indicators are also being closely watched, including the February jobs report and remarks by Federal Reserve Chair Jerome Powell on Friday. These events could provide clues about the health of the consumer economy and influence market sentiment.
Cryptocurrencies also experienced volatility Monday morning after President Trump’s comments on a strategic crypto reserve sparked a weekend rally. Bitcoin fell 3.6% to $90,942, while the largest cryptocurrency was still 16.7% away from its record high.
Source: https://www.marketwatch.com/livecoverage/stock-market-today-dow-s-p-and-nasdaq-to-hold-latest-rally-after-bitcoin-surge