The S&P 500 and Nasdaq closed higher as investors eye the economic trajectory

  • US factory orders for May rose more than expected
  • Energy stocks falter, technology rises
  • Dow Jones down 0.42%, Standard & Poor’s 500 up 0.16% and Nasdaq 1.75%

NEW YORK (Reuters) – The Standard & Poor’s 500 Index ended slightly higher on Tuesday as investors kept their focus on the growth trajectory of the U.S. economy, the tech-heavy Nasdaq closed higher while the Dow Jones fell.

US stocks have come under relentless selling pressure this year, with the benchmark S&P 500 Index (.SPX) Marking the largest percentage drop in the first half since 1970, as the Federal Reserve turns away from easy money policy by increasing borrowing costs.

Investors await the minutes of the Federal Reserve’s June meeting on Wednesday as they prepare to raise interest rates by another 75 basis points at the end of the month.

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Traders are also watching economic data, including the June Nonfarm Payrolls report expected on Friday, and the company’s comments about signs of inflation peaking and economic growth slowing, with another earnings season approaching.

Data showed that new orders for US manufactured goods increased more than expected in May, reflecting that product demand remains strong even as the Federal Reserve seeks to cool the economy. Read more

Separately, business growth across the eurozone slowed further in June and European natural gas prices rose again, raising fears of a recession in the bloc. Read more

“The risk of an outright recession is nil and the probability is rising at this point from the possibility of a recession later — this year, or perhaps even early 2023,” said Bill Northey, senior investment manager at US Bank Wealth Management in Minneapolis. And the US job market still looks healthy.

Dow Jones Industrial Average (.DJI) It fell 129.44 points, or 0.42%, to 30,967.82 Standard & Poor’s 500 (.SPX) It rose 6.06 points, or 0.16%, to 3,831.39 points, and the Nasdaq Composite (nineteenth) It added 194.39 points, or 1.75%, to 11,322.24 points.

Record US Treasury yields fell on Tuesday and a major part of the yield curve inverted for the first time in three weeks as economic growth concerns reduced risk appetite and increased demand for safe-haven US debt.

Eight of the 11 major S&P sectors ended lower, with telecom services (.SPLRCL) Leading gainers and energy (.SPNY) Marking the largest percentage drop, hitting a five-month low as recession fears clouded the outlook for oil demand.

Volume on US exchanges was 12.39 billion shares, compared to an average of 13.03 billion for the full session over the last 20 trading days.

Low issues outnumbered advanced issues on the New York Stock Exchange by 1.33 to 1; On the Nasdaq, the 1.37 to 1 ratio favored heights.

The S&P 500 hit a new 52-week high and 51 new low; The Nasdaq Composite recorded 13 new highs and 308 new lows.

(covering Echo Wang) in New York. Additional reporting by Amruta Khandekar and Shreyachi Sanyal in Bengaluru Editing by Shonak Dasgupta and Matthew Lewis

Our criteria: Thomson Reuters Trust Principles.

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