The US markets closed mostly lower in choppy trading session on Monday as early support from a rally in China faded, with lower oil prices and disappointing earnings signals from firms including Halliburton and Hasbro helping pull the market lower. Chinese stocks surged higher amid optimism about additional stimulus to stimulate the world’s second largest economy after last week’s disappointing Gross Doemstic Product (GDP) data. After three top Chinese financial regulators stepped in to bolster investor confidence last Friday, Chinese President Xi Jinping vowed unwavering support for the country’s private sector.
Moreover, traders expressed some uncertainty about the near-term outlook for the markets following recent volatility. A lack of major US economic data also kept some traders on the sidelines ahead of the release of reports on new home sales, durable goods orders, and consumer sentiment in the coming days. The Federal Reserve is also due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts. The report may shed additional light on the outlook for interest rates.
Dow Jones Industrial Average slipped 126.93 points or 0.50 percent to 25,317.41 and S&P 500 was down by 11.90 points or 0.43 percent to 2,755.88, while Nasdaq gained 19.60 points or 0.26 percent to 7,468.63.
