US and global markets are bracing for a volatile trading session as investors weigh the risks of a slowing economy. The S&P500 index fell below its 6,000 handle on Monday, marking a three-week low, amid concerns about chip giant Nvidia’s earnings report. The tech-heavy Nasdaq and small-cap Russell 2000 indexes also posted losses for the year.
The anxiety is fueled by economic data that suggests a slowdown in business and consumer spending. Retail sales have disappointed, and business surveys indicate a contracting service sector. The University of Michigan’s household survey showed consumer confidence at 15-month lows, while the Conference Board’s equivalent measure is expected to drop to five-month lows.
The impact on markets is evident in the Treasury market, where yields have plummeted to their lowest for the year. Ten-year Treasury yields fell to 4.33%, while two-year yields reached a record low of 4.11%. The dollar has held steady despite economic concerns, while other major currencies are experiencing volatility.
The global picture remains mixed, with Europe’s stock market outperforming its US counterpart. However, fears about a messy Ukraine war deal have sent shockwaves across the continent, boosting defense spending and driving up the European aerospace and defence index.
Investors will be watching closely for updates on corporate earnings, including Home Depot and First Solar, as well as speech by key Fed officials. The market’s focus will also shift to US Treasury sales of $70 billion in 5-year notes.
Source: https://finance.yahoo.com/news/morning-bid-p500-loses-6-111653208.html