S&P 500 ends lower as Tesla falls, while energy rallies

Might 16 (Reuters) – The S&P 500 ended decrease on Monday, with Tesla and different progress shares dropping floor after downbeat Chinese language financial knowledge added to worries a few international slowdown and rising rates of interest.

China’s financial exercise cooled sharply in April as widening COVID-19 lockdowns took a heavy toll on consumption, industrial manufacturing and employment, including to fears the economic system might shrink within the second quarter. learn extra

Nonetheless, power shares bought a carry from optimism that China would see vital demand restoration after constructive indicators that coronavirus pandemic was receding within the hardest-hit areas. learn extra

The S&P 500 power index (.SPNY) rallied to a 2014 intra-day excessive, and it closed up 2.6%, making it the strongest performer amongst 11 sector indexes.

Buyers questioned whether or not a robust day on Wall Avenue final Friday would possibly sign the tip of a latest sell-off that has left the S&P 500 down about 16% from its file excessive shut in January.

“After the massive rally on Friday, individuals are trying round and asking whether or not it feels sustainable,” mentioned Ross Mayfield, an funding strategist at Baird in Louisville, Kentucky. “Does it really feel just like the momentum thrust you’ll see coming off of a low, or is there nonetheless extra of a capitulation to be labored out?”

Lots of Wall Avenue’s megacap progress shares had been decrease, with Amazon (AMZN.O) and Google-owner Alphabet (GOOGL.O) dropping greater than 1% and weighing on the S&P 500 and Nasdaq.

Twitter (TWTR.N) fell greater than 8% after Bloomberg reported that Elon Musk mentioned a deal to purchase the social media firm at a lower cost than his beforehand agreed $44 billion was “not out of the query.” learn extra

Tesla (TSLA.O), which Musk leads, fell nearly 6%.

The S&P 500 healthcare sector index (.SPXHC) rose 0.7%, lifted by a 2.7% leap in Eli Lilly & Co (LLY.N) after the drugmaker received U.S. approval for tirzepatide, to deal with adults with sort 2 diabetes. learn extra

Buyers have been frightened that aggressive rate of interest hikes by the U.S. Federal Reserve to fight decades-high inflation might tip the economic system right into a recession, with the battle in Ukraine, provide chain snarls and the pandemic-related lockdowns in China exacerbating the financial troubles.

Knowledge on Monday confirmed manufacturing unit exercise in New York state slumped in Might for the third time this 12 months amid a collapse in new orders and shipments. learn extra

Merchants at the moment are pricing a close to 86% likelihood of a 50-basis-point hike by the Fed in June.

Unofficially, the S&P 500 declined 0.39% to finish the session at 4,008.01 factors.

The Nasdaq declined 1.20% to 11,662.79 factors, whereas Dow Jones Industrial Common rose 0.08% to 32,223.42 factors.

Buyers are centered on retail gross sales knowledge due on Tuesday, following worrying inflation and shopper sentiment knowledge final week.

Retailers together with Walmart Inc (WMT.N), Dwelling Depot (HD.N) and Goal Corp (TGT.N) are because of report their quarterly outcomes this week.

Spirit Airways (SAVE.N) rallied 13.5% after JetBlue Airways (JBLU.O) launched a hostile takeover bid for the low cost service. JetBlue shares slipped 6.1%, whereas shares of rival bidder Frontier Group (ULCC.O) gained nearly 6%. learn extra

Advancing points outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored decliners.

The S&P 500 posted one new 52-week excessive and 31 new lows; the Nasdaq Composite recorded 17 new highs and 190 new lows.

Quantity on U.S. exchanges was 11.3 billion shares, in contrast with a 13.2 billion common over the past 20 buying and selling days.

Reporting by Amruta Khandekar and Devik Jain in Bengaluru and Noel Randewich in San Francisco; Further reporting by Devik Jain in Bengaluru; Enhancing by Shounak Dasgupta and Lisa Shumaker

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