HomeBusinessStocks End Lower After Two Weeks of Gains: Stock Market News Today

Stocks End Lower After Two Weeks of Gains: Stock Market News Today

Shares on Wall Street fell Tuesday after traders returning from a long weekend struggled with the highest levels of oil prices in more than a year and new data shows the Chinese economy is still struggling to recover.

The S&P 500 (^GSPC) fell about 0.4%, while the Dow Jones Industrial Average (^DJI) lost about 0.6%. The tech-heavy Nasdaq Composite (^IXIC) ended slightly lower than the flatline, reversing previous losses.

The three key indicators had a winning week with the S&P 500 posting its best weekly performance since June as a flurry of economic updates fueled hopes that the Federal Reserve would refrain from a rate hike at its September meeting.

Data from Tuesday showed that Chinese services activity fell to its lowest level in eight months in August, reigniting concerns about the recovery of the world’s second-largest economy — and what that means for global demand.

Meanwhile, WTI crude oil (CL=F) ended the day near $87 a barrel, its highest close since November 2022.

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Amid the downturn debate, analysts at Goldman Sachs have lowered their chances of a US recession given cooling inflation and a still-resilient job market. In addition, they downplayed the idea that a prolonged delay in the Fed’s rate hike campaign would push the economy into a serious slowdown.

With a light earnings and economic calendar ahead, the focus this week is likely to remain on the Fed, while investors looking at seasonal forces playing a role in equities may find fewer reasons to cheer. September has historically been a gloomy month for the markets.

That said, some analysts believe September may not be as bad as expected, pointing to factors such as excitement around AI, cash on the sidelines, and the rumored Apple’s new iPhone release.

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