US stocks closed lower on Monday, with little support for investor confidence, as they approached the halfway point of a year in which stock markets have been hit by growing concerns about inflation and the tightening of the monetary policy of the fed.
Major US stock indices lost ground after swinging early in the session, and weakness in interest rate-sensitive mega-caps such as amazon.com, Microsoft Corporation and Alphabet Inc, was the biggest drag.
The S&P 500 lost 11.63 points, or 0.30%, to 3,900.11 units, while the nasdaq it lost 83.07 points, or 0.72%, to 11,524.55 units. The Dow Jones Industrial Average it fell 62.42 points, or 0.20%, to 31,438.26 units.
“The reason for the lack of direction this week and next week is that investors are watching what’s going to happen in the second quarter,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
All three indices are on track to post two consecutive quarterly declines for the first time since 2015. They also look set to close June with losses, which would mean three consecutive months of declines for the nasdaqtech heavyweight, its longest losing streak since 2015.
The S&P was on track to report its fifth-worst drop so far this year from 1962 through Friday, Stovall said.
Rising oil prices helped push energy stocks to the fore, while smaller economically sensitive stocks and those of semiconductor and transportation companies also outperformed the broader market.
Economic data surprised to the upside as new durable goods orders and pending home sales beat expectations and added credence to the Fed Chairman’s statement, Jerome Powellthat the economy is robust enough to withstand the central bank’s measures to curb inflation.
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