US stocks falter, crude tumbles as weak data fuels recession fears

  • ISM PMI shows US factory activity slowed in July
  • Crude tumbles on demand worries
  • HSBC’s upbeat earnings dampen STOXX selling
  • The dollar hits its lowest level in 6 weeks against the yen

NEW YORK, Aug 1 (Reuters) – Wall Street tumbled and crude prices plunged on Monday as global factory data showed demand weakening under inflationary pressures, while the looming possibility of a recession dampened risk appetite.

All three major U.S. indexes were slightly higher on the first day of August, on the heels of the S&P 500 and the Nasdaq’s biggest monthly percentage gains since 2020.

“The market is a little on edge, it’s just trying to find its way right now,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “A lot of people are trying to figure out if we’ve seen bottom and will we… climb higher from here.”

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The Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) showed US factory activity slowed in July to its lowest level since August 2020, but remained in trading territory. expansion as long-standing supply restrictions appeared to ease. Read more

The report follows a series of data from Europe and Asia that showed factory activity slowing or contracting in the face of weakened global demand and persistent inflation. Read more

The Dow Jones Industrial Average (.DJI) rose 1.53 points, or 0%, to 32,846.66, the S&P 500 (.SPX) gained 1.41 points, or 0.03%, to 4,131 .7 and the Nasdaq Composite (.IXIC) added 57.64 points, or 0.47%, to 12,448.33.

European stocks were essentially unchanged as recession fears were eased by strong earnings at HSBC banking group (HSBA.L). Read more

The pan-European STOXX 600 index (.STOXX) rose 0.01% and the MSCI gauge of stocks across the world (.MIWD00000PUS) gained 0.31%.

FACTORY DATA

Emerging market stocks rose 0.15%. MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) closed up 0.23%, while the Japanese Nikkei (.N225) rose 0.69%.

Crude prices fell as global factory data weighed on the demand outlook and market participants braced for this week’s meeting of OPEC and other oil producers on supply. world of crude. Read more

U.S. crude fell 5.13% to $93.56 a barrel and Brent was last at $99.87, down 3.94% on the day.

U.S. Treasury yields slid in choppy trade as economic data continued to hint at an impending slowdown that could prompt the Federal Reserve to slow the pace of interest rate hikes.

Benchmark 10-year notes last rose 14/32 to 2.5911%, down from 2.642% Friday night.

The 30-year bond last rose 26/32 to 2.9357%, down from 2.977% Friday night.

The dollar lost ground against a basket of global currencies as market participants gauged the likelihood of a near-term recession. Read more

The dollar index fell 0.52%, with the euro up 0.49% at $1.0268.

The Japanese yen strengthened 1.01% against the greenback to 131.89 to the dollar, while the pound last traded at $1.2268, up 0.84% on the day.

Gold prices rose as the dollar weakened as investors looked to economic data for clues on the pace of interest rate hikes from the US Federal Reserve.

Spot gold added 0.2% to $1,769.09 an ounce.

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Reporting by Stephen Culp; Additional reporting by Carolyn Cohn in London and Bansari Kamdar in Bangalore; Editing by David Holmes

Our standards: The Thomson Reuters Trust Principles.

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