US market closed mostly lower amid fears of global slowdown

The US markets closed mostly down on Monday, with Standard & Poor’s 500 Index halting its longest rally since 2010, though enthusiasm for tech stocks limited losses but investors focused on weak Japanese economic data. The S&P index had rallied for five straight weeks and rebounded 10 percent from a five-month low on June 1, closing on August 10 at the highest level in four months. Meanwhile, investors are debating whether the US economy is weak enough to warrant additional stimulus from the Federal Reserve. Hopes for a third round of asset purchases by the Fed have been a key driver of the market’s gains this year. But last month’s better-than-expected jobs report raised questions about whether the central bank will need to take further action.

In Europe, Germany’s wholesale price inflation rose to 2% in July from 1.1% in June, as per latest data from the Federal Statistics Office. The increase was driven by a 4.7% surge in wholesale prices of solid fuels and petroleum products. On a monthly basis, prices increased 0.3% in July. Besides, the Greek economy contracted for the ninth straight time in the second quarter. Gross domestic product declined by 6.2% from the prior year, but slower than the 6.5% decrease a quarter ago. Separately, the Italian Treasury sold €8 billion of Treasury bills of 12-month debt at an average yield of 2.767% compared to an average yield of 2.697% at the prior auction on July 12.

The Dow Jones industrial average lost 38.52 points, or 0.29 percent, to 13,169.40. The S&P 500 Index lost 1.76 points, or 0.13 percent, to 1,404.11, while the Nasdaq Composite was up by 1.66 points, or 0.05 percent, to 3,022.52.

The Indian ADRs closed mostly in red on Monday, ICICI Bank was down 0.53%, Dr. Reddy’s Lab was down 0.47% and Infosys was down 0.39%. On the other hand, Sterlite Industries was up 0.04% and MTNL was up 0.02%.