US. Equities fought the right direction for Monday, as data pointing to a weak global economic front triggered heavy losses late last week.
Meanwhile, investors seemed little to respond to the end of the investigation by special counsel Robert Mueller in 2016 presidential elections.
Social media-oriented tech companies and financial companies were among the major declines.
How are benchmark indices traded?
The Dow Jones Industrial Average
rose 20 points to 25,523 (S & P 500)
climbed to 2,800 points and the Nasdaq Composite Index
lost 3 points to 7,639.
On Friday, all three benchmarks posted their biggest one-day decline since 3 January.
Read: The S & P 500 could fall 40% as the yield curve reverses, says an analyst in 2018 hedge fund returns
What drives the market
Wall Street continued to focus on recession fears. It was triggered on Friday by a weak March PMI in the eurozone, indicating a further weakening in activity. US data showed that manufacturing growth slowed to a 21-month low in March, further fueling these fears.
Global markets fell in red, in line with Asian equities, while European equities also moved south.
The persistence of below-average interest rates in Europe could revive a dangerous "search for yield."
Market participants digested the implications of the investigation by Mueller, of which Attorney General William Barr found no evidence Trump's campaign "conspired with Russia or coordinated" to influence the 2016 presidential election. The investigation also examined whether President Donald Trump obstructed the judiciary, but failed to come to a definitive conclusion.
Read: According to Mueller, the likelihood that Trump will be forced out of office will drop to an all-time low.
Rattled investors poured money into bonds and forced the spread between the 3-month Treasury
TMUBMUSD03M, + 0.00%
and the 10-year mark
is inverted for the first time since 2007. The inversion of the yield curve – as the rate of longer-term debt falls below its shorter counterparts – is seen by many as an accurate indicator of the recession.
Read: The Yield Curve Inverted – Here are 5 Things Investors Need to Know
The US economic calendar is empty, but new data from Europe showed that the survey of the German business climate has Institute has risen from 99.3 in March from a forecast of 98.3, according to Dow Jones Newswires. The index fell to 98.5 in February.
Chicago Fed President Charles Evans said in Hong Kong that it is prudent to be patient and examine what more data will bring before deciding to take further interest rate action.
US Treasury Secretary Steven Mnuchin and leading US trade negotiator Robert Lighthizer will return to Beijing for trade talks.
What do strategists say?
"Things can calm down as we feel good vibrations from the trade talks in Beijing this week, but it could take a few days before we start," said Jeffrey Halley, senior market analyst at OANDA, in a statement to customers.
Frank Cappelleri, technical strategist at Instinet LLC, said financials would be the key to the future. The S & P 500 financials fell more than 4% this month after the Fed took a more restrained stance.
"It is needless to say that this type of massacre continues in financial situations, and it will be very difficult for the broader market to move in the opposite direction," he said.
Which stocks were the focus?
Shares of Apple Inc. .
dropped 0.1% as its "special event" on late Monday will include the unveiling of its highly anticipated streaming video service and updates for iPad and Mac Computers ,
Equities fell 1.2% after RBC Capital analysts lowered their price target for the stock from $ 245 to $ 210 had.
Shares of AGG
fell 1.5% when the pharmaceutical company continued its opposition to the activist investor Appaloosa, who urges Allergan independent chairman of The Board.
Shares of WW
WTW, + 1.08%
previously known as Weight Watchers International Inc., gained 1.8% after the Oppenheimer I understand that the lack of customer growth at the beginning of the year 2019 is probably due to the fact that the communication on the relocation to a wellness company is not adequately communicated. He said the company will launch a new marketing campaign to correct the missteps.
What are other markets doing?
European equity markets were lower compared to the Ifo data but with the Stoxx 600 Europe index
fell 0.4%, after declining 1.2% on Friday. This is the biggest drop since a day since February 7th. Asian stock markets closed lower, with Japan's Nikkei, Hong Kong's Hang Seng Index and China's Shanghai Composite Index slipping.
Crude oil prices on commodity markets
were weaker while the gold price fell
GCJ9, + 0.72%
and the US dollar
remained under pressure.
– Barbara Kollmeyer contributed to this report at
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