US stocks dip as investors look ahead to a busy week of earnings, Fed tightening, and GDP data
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- Stocks dipped Monday ahead of a big week of tech earnings and a Federal Reserve meeting.
- The Fed is expected to announce another 75-basis-point rate hike on Wednesday.
- Second-quarter GDP data is due Thursday, and investors will watch whether a technical recession has arrived.
US stocks dipped Monday ahead of a packed week that includes a Fed meeting, key economic data, as well as earnings from Alphabet, Amazon, Apple, and Microsoft.
The Fed will wrap up its meeting on Wednesday and is expected to announce another 75-basis-point rate hike. Investors also will be monitoring second-quarter gross domestic product data on Thursday, and whether or not it shows evidence of a technical recession, or two consecutive quarters of decline.
Larry Summers said a US recession is very likely as the market braces for weak second-quarter growth figures.
Here's where US indexes stood as the market opened 9:30 a.m. on Monday:
- S&P 500: 3,955.53, down 0.15%
- Dow Jones Industrial Average: 31,869.70, down 0.9% (29.59 points)
- Nasdaq Composite: 11,798.21, down 0.30%
According to Bank of America, stocks have limited upside in the short term due to depressed sentiment, and the start of a new bull market will need some new catalysts.
Meanwhile, Google cofounder Sergey Brin may be set to rake in over $100 million by selling his Tesla stock, after he put $500,000 into Elon Musk's automaker before it went public.
Overseas, China could boost the status of the yuan if it were to take on more US dollar reserves, as it would raise the credibility for other countries to use the renminbi, a new paper argues.
Oil inched higher, with West Texas Intermediate up 1.30% to $96.11 a barrel. Brent crude, the international benchmark, moved higher 1.16% to $104.38 a barrel.
Gold edged lower 0.33% to $1,721.30 per ounce. The 10-year yield rose 5.9 basis points to 2.838%.
Bitcoin slipped 3.39% to $21,974.41.