Wall Street closes lower after long holiday weekend, eyes on upcoming earnings reports

  • Investing.com
Wall Street closes lower after long holiday weekend, eyes on upcoming earnings reports

Wall Street ended lower on Tuesday as traders returned from a long holiday weekend. The S&P 500 shed 0.4%, coming off its second weekly gain. The Dow Jones Industrial Average fell by 0.6%, and the Nasdaq Composite slipped by 0.1%.

The Russell 2000 index, which tracks smaller companies, saw a more significant drop, falling 40.38 points or 2.1% to 1,880.45.

Despite the downturn, crude oil prices rose, following news that Saudi Arabia and Russia would extend their voluntary production cut of 1 million barrels of oil a day through the end of the year.

Looking ahead, Wall Street anticipates a quieter week with company earnings reports winding down. A few government economic reports are expected, including data on manufacturing, layoffs, and trade.

Several companies are set to report their most recent quarterly financial results this week, including DocuSign (NASDAQ: DOCU ), GameStop (NYSE: GME ), Dave & Buster's and Kroger (NYSE: KR ).

On the macroeconomic front, investors continue to assess the Federal Reserve's stance on interest rates. The central bank has aggressively raised its main interest rate since 2022 to combat inflation, bringing it to the highest level since 2001.

Inflation measures have been nearing the Fed's target of 2%, and the economy continues to grow, alleviating concerns about aggressive rate hikes pushing the economy into a recession.

In other markets, Europe and Asia had mixed results. Hong Kong's benchmark fell by 2.1% as investors sold real estate shares that had recently gained following government efforts to support the industry.

As for annual performance thus far, the S&P 500 is up by 657.33 points or 17.1%. The Dow has gained 1,494.72 points or 4.5%, and the Nasdaq has risen by 3,554.47 points or 34%. Meanwhile, the Russell 2000 is up by 119.20 points or 6.8%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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