NASDAQ 100, Dow Jones, S&P 500: Mixed on Return from Holiday Break as Investors Await Fed Minutes

Highlights

• U.S. stocks start the week with declines after the holiday break.
• Investors eagerly await Federal Reserve meeting minutes for insights into monetary policy.
• Stocks experience mixed moves, with Rivian surging, Coinbase slipping, and Transocean rising.

Overview

U.S. stocks started the week on a downward note as Wall Street returned from a holiday break and awaited the release of Federal Reserve meeting minutes. The Dow Jones Industrial Average dropped 136 points, or 0.4%, while the S&P 500 saw a 0.2% dip and the Nasdaq Composite remained relatively flat.

At 14:39 GMT, the blue chip Dow is trading 34305.15, down 113.31 or -0.33%. The benchmark S&P 500 Index is at 4452.48, down 3.11 or -0.07% and the tech-weighted Nasdaq Composite is trading 13839.88, up 23.11 or +0.17%.

Investors are eagerly anticipating the minutes from the June Fed meeting, which could shed light on the future direction of monetary policy. Although the decision to keep interest rates steady was expected, the revelation that members foresee two more rate hikes before year-end caught the market off guard. Policymakers continue to emphasize the need for further actions to combat inflation.

In economic news, factory orders in May fell short of expectations, with a month-over-month rise of 0.3% compared to the anticipated 0.6% increase. The data suggests a slowdown in manufacturing activity, which could have implications for economic growth. Following the positive momentum of the previous trading session, marked by the start of a new month, quarter, and half-year, investors are now digesting mixed signals and recalibrating their strategies.

Several stocks are making notable moves in premarket trading. Electric vehicle maker Rivian experienced a 6.5% jump following better-than-expected delivery numbers for the second quarter. Coinbase, a crypto services company, saw a more than 2% drop after a downgrade by Piper Sandler, citing a lack of increased trading volume despite the recent market rally. On the other hand, offshore oil drilling company Transocean enjoyed a 3.7% increase in stock price after receiving an upgrade from Citi, which believes the company is favorably positioned among its peers.

Looking ahead, market participants will closely analyze the Federal Reserve meeting minutes for insights into the central bank’s thinking and potential future actions. The overall market sentiment appears cautious as investors navigate economic data, geopolitical events, and evolving monetary policy dynamics. The coming days will provide a clearer picture of market trends and whether the recent positive momentum can be sustained in the face of various challenges and uncertainties.