The final results of the session indicate that the Dow Jones Industrial Average index lost 0.14%, the Nasdaq fell 0.65%, and the broader S&P 500 dropped 0.49%.
The market is “struggling to find direction,” noted Adam Sarhan of 50 Park Investments in comments to AFP.
Sarhan emphasized, however, that “after a strong rise, it’s normal (…) to see the market stagnate a bit while awaiting the next catalyst for an increase.”
Investors were displeased with the monthly survey released today by the trade association ISM. The index measuring activity in the service sector stood at 50.1% in July, down from 50.8% in June, nearing the 50% threshold that indicates a contraction in activity.
“The main takeaway from this report is that it reflects a slowdown in growth in the country’s largest sector, accompanied by a faster contraction in employment and accelerated price increases,” noted analysts at Briefing.com.
“We are observing that the economic situation is changing,” pointed out Adam Sarhan, something that concerns market participants.
On Friday, official data showed a deterioration in the U.S. labor market conditions in recent months.
In the bond market, the 10-year U.S. Treasury yield rose slightly, around 8:10 PM, to 4.20%, compared to 4.19% at the previous day’s close.
At the same time, investors continue to monitor the developments around tariffs, ahead of their scheduled implementation on Thursday.
The U.S. President today raised his voice against India, criticizing it for buying Russian oil, and against the pharmaceutical sector, ensuring that new tariffs could be announced quickly, at a level higher than previously expected.
After several agreements signed in recent days, products from the European Union (EU), Japan, and South Korea will be taxed at 15%, and those from the United Kingdom at 10%. Indonesia, at 19%, and Vietnam and Taiwan at 20%.
“Anything can happen” before the deadline, warned Sarhan.
Additionally, the U.S. stock market continues to digest a “significant volume” of corporate earnings, noted analysts at Briefing.com.
U.S. pharmaceutical company Pfizer (+5.12%, to $24.73) benefited from second-quarter results that exceeded expectations, driven particularly by its Covid-19 vaccine and treatment, as well as its cancer medications.
Semiconductor giant Intel gained ground (+3.54% to $20.19), despite the downgrade by Fitch Ratings.
The results from Disney and McDonald’s will be released on Wednesday.
