4:05pm: Stocks waver as Bitcoin, gold move higher
At Monday’s market close, the three major stock indexes were lower led by a pullback in tech stocks.
The Nasdaq was down 0.4% at 16,207 points, the Dow Jones was 0.3% lower at 38,990 points and the S&P 500 was 0.1% lower at 5,130 points.
Bitcoin, meanwhile, continued to close in on its record-high price finishing the day at $67,523 while gold was up 1.4% at $2,125.60 per ounce.
11:59am: Tech stocks struggle
US stocks started Monday lower after a record-setting end to the previous week, with megacaps Apple Inc (NASDAQ:AAPL, ETR:APC), Alphabet Inc (NASDAQ:GOOG) and Tesla Inc (NASDAQ:TSLA, ETR:TL0) driving the decline.
The S&P 500 and Nasdaq edged back from their record Friday highs, with technology stocks leading the way.
Both fell 0.3% in early trade, with Apple down 3%, Alphabet 3.5% lower and Tesla reversing 6.2%. Half of the 20 largest stocks in the S&P 500 were in the red, with Microsoft, Nvidia, Amazon and Meta notable exceptions.
The largest faller among the 'Magnificent 7' stocks, Tesla was sliding on the back of news that it has launched a fresh round of price cuts in China and the US.
Apple meanwhile was knocked lower after being hit with a €1.8 billion fine by European authorities for stifling competition from rival music streaming services on its App Store. Apple says it will appeal the decision.
The price of gold continued to tick up as stocks slid into the red, adding to the gains made on Friday and setting a new all-time high.
Gold soared to two-month highs on Friday as traders reconsider June rate cut potential, according to analysts, having bounced suddenly on Friday to $2,085 per oz, and today taking another leg up to above $2,117.
Several data releases on Friday from the US showed a weaker economy, supporting bets on Fed rate cuts into the summer.
Traders will be keeping a close eye on gold mining stocks to see if they can benefit from these latest gains, said market analyst David Morrison at Trade Nation.
"In particular, Newmont Corp is worth watching. After hitting its lowest level in nearly five and a half years on Wednesday, Newmont suddenly gapped higher and built on these gains on Friday. Does this signal a turnaround? Or are we witnessing yet another false dawn for precious metals?"
Joseph Dahrieh, managing principal at Tickmill, also noted weakness in the dollar as the market absorbed what he called "a series of disappointing economic reports from the US alongside comments from key central bank officials".
The latest data showed a contraction in the US manufacturing sector for the 16th consecutive month in February, the longest stretch in 22 years, with the ISM’s PMI survey indicating a faster-than-expected decline.
On top of that the Michigan consumer survey revealed weakened morale for February, reflecting deteriorating expectations and current conditions.
Cautions Fed speak emerged from NY Fed president Williams anticipating rate cuts later in the year, with Richmond Fed president Barkin playing down premature hike predictions and citing persistent price pressures.
"Market focus shifted towards upcoming events, including the ISM services PMI for February and Fed chair Powell’s testimony, which could fuel the dollar’s volatility."
Wednesday also brings the JOLTs Job Openings report, anticipated to decline from the previous month.
"These events, combined with potentially weaker economic data, may foster negative sentiment towards the U.S. dollar," said Dahrieh.
7.49am: Dow Jones called lower at open
The Dow Jones is expected to open lower in a mixed start for Wall Street on Monday as investors gear up for a heavy week of macroeconomic news.
Futures had The Dow Jones Industrial Average at 39,041 on Monday morning, down 101 points, while the S&P 500 was seen 5 points lower at 5,140.
The Nasdaq Composite is expected to open in the green meanwhile, with the index sitting 16 points higher at 18,347 in futures trading.
In the US, key jobs data is due to be released on Friday, though Wednesday’s Spring Budget in the UK and interest rate decision by the Bank of Canada, followed by the European Central Bank’s own call on Thursday will give traders lots to mull over before then.
“All that matters to the market, it seems, is the timing of the first rate cut and how far they expect to go with policy easing,” Finalto analysts said on Monday.
Canada will likely see base rates held for now, with the door potentially being opened by policymakers in Europe for a cut in the summer, according to Finalto.
Tax cuts and forecasts on government borrowing in the UK could affect gilts and the Sterling following the budget in the UK on Wednesday, analysts added.
On Friday’s jobs report in the US, Finalto said: “More strength in February would support the wait-and-see narrative that has seen expectations for rate cuts this year significantly dialled down.”
Among Monday’s headline, Macy’s, Inc. shares gained ground in pre-market trading on reports of a US$6.6 billion takeover offer from a consortium of hedge fund firms.
And finally, Apple lost ground after being hit with a €1.8 billion (US$1.95 billion) fine in the EU over supposed abuse of its dominant position in the music streaming market.