HomeBusinessStocks Move Lower on Dismal China Data: Stock Market News Today

Stocks Move Lower on Dismal China Data: Stock Market News Today

Shares of Wall Street fell during Tuesday’s open as traders returning from a long weekend struggled with new data showing the Chinese economy is still struggling to recover.

The S&P 500 (^GSPC) fell 0.1%, while the Dow Jones Industrial Average (^DJI) remained broadly unchanged, with both recouping previous deeper losses. The technology-focused Nasdaq Composite (^IXIC) fell 0.4% as rising 10-year Treasury yields weighed on growth stocks.

Shares of Nvidia (NVDA) and Apple (AAPL) fell as markets reopened after the Labor Day holiday.

The three key indicators have 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.

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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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