Nasdaq 100, Dow Jones, S&P 500: Mixed Results on Wall Street as Investors Await Economic Data

Highlights

• Mixed Results in the Stock Market
• Tesla’s Shares Rise as Energy Stocks Dip
• Economic Data Influences Fed’s Monetary Tightening Path

Overview

Wall Street’s main indexes showed mixed results early Tuesday as investors waited for important economic data that could influence the U.S. Federal Reserve’s monetary tightening path.

The Dow and S&P 500 are coming off their fourth straight day of gains, rising nearly 1% and 0.4% on Monday, while the NASDAQ slipped 0.3%.

The S&P index recorded nine new 52-week highs and no new low, while the NASDAQ recorded 36 new highs and 38 new lows. Despite persistent inflation, a banking crisis, and higher rates, markets have been quick to recover of late, with the major averages rising.

Tesla’s Shares Lift S&P 500, NASDAQ While Energy Stocks Dip

Gains in Tesla shares capped the losses on the S&P 500 and the NASDAQ. Tesla’s shares rose 1.7% as sales of its China-made electric vehicles bounced back from a 6% decline on Monday. This led to consumer discretionary shares topping the S&P 500, while energy stocks edged lower after a strong rally on Monday.

Oil Prices Rise on OPEC+ Output Cuts; Traders Bet on May Rate Hike

Rising oil prices following the OPEC+ group’s output cuts have renewed fears about inflation, denting hopes of an end to aggressive interest rate hikes despite recent signs of cooling prices and turbulence in the banking sector.

Traders’ bets of a 25-basis point rate hike in May stood at 60%, with odds of a pause at 40%, according to CME Group’s Fedwatch tool.

Investors Await US Economic Data to Evaluate Fed’s Monetary Tightening Path

As investors attempted to assess whether the aggressive rate hikes have cooled the economy to the Fed’s satisfaction, they awaited data on U.S. job openings, which was expected to show a fall in February.

Later, a separate report was expected to show factory orders fell 0.5% in February, following surveys indicating weak U.S. manufacturing activity in March.

Virgin Orbit Holdings files for Chapter 11 bankruptcy; Etsy Shares Rise on Piper Sandler Upgrade

Among stocks, Virgin Orbit Holdings filed for Chapter 11 bankruptcy after failing to secure long-term funding, causing a 20.1% decline in its shares.

Shares of AMC Entertainment Holdings tumbled 15.9% after the company agreed to settle litigation and proceed with converting its preferred stock into common shares.

Digital World Acquisition Corp‘s shares fell 4.3% after the SPAC linked to former U.S. President Donald Trump delayed the filing of its annual financial report.

On Tuesday, Etsy shares popped more than 4% after Piper Sandler upgraded shares to overweight from neutral, citing a reacceleration in active buyer growth.

Short-Term Forecast

The U.S. stock market is expected to show mixed results today as investors wait for important economic data that could influence the U.S. Federal Reserve’s monetary tightening path.

Oil prices rise on OPEC+ output cuts, renewed fears of inflation, while traders bet 60% on a 25-basis point rate hike in May, which could impact the market.

Additionally, investors are waiting for data on U.S. job openings and a report on February factory orders. Virgin Orbit Holdings filed for Chapter 11 bankruptcy, while Piper Sandler upgraded Etsy shares to overweight from neutral, causing a rise.