Dow, S&P 500 close at record highs after shaking off China growth worries

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 20, 2020. REUTERS/Lucas Jackson
  • The Dow Jones industrial average and the S&P 500 finished higher on Monday, notching another set of records.
  • US stocks opened lower after Chinese data pointed to a slowdown amid mounting fears of the Delta variant.
  • Oil prices tumbled on Chinese demand worries.
  • See more stories on Insider's business page.

US stocks closed at record highs Monday, turning higher after a weak start as investors mulled slowing Chinese economic growth following downbeat data from the world's second-largest economy.

The healthcare, utilities, and consumer staples sectors - generally considered defensive investments - led the way higher for the S&P 500. Apple's mid-day stock reversal also helped.

Stocks initally traded lower after Chinese data on industrial production, retail sales, and investment activity in July came much weaker than expected, while unemployment increased. The readings added to concerns about the impact of the Delta variant of the coronavirus on the economy as local officials have been forced to impose targeted lockdowns.

Here's where US indexes stood at the 4 p.m. market close on Monday:

"While some of the miss was attributed to weather-related issues, the COVID outbreak and containment measures are going to take a toll as well, creating problems not just for China but trading partners as well," Craig Erlam, senior market analyst at Oanda, said in a note. "More supply issues and bottlenecks are likely if these measures don't resolve the issue quickly."

Around the markets, Tesla shares fell after the US auto safety regulator opened a new investigation into the electric vehicle maker's Autopilot system following crashes with parked emergency vehicles.

Sonos surged after the International Trade Commission issued a preliminary ruling that Google-parent Alphabet infringed on five patents held by the maker of high-end speaker systems.

"Big Short" investor Michael Burry raised his bet against Tesla and revealed a new wager against Cathie Wood's Ark Innovation ETF.

Gold rose as much as 0.5% to $1,789.31 per ounce.

Oil prices slumped on concerns about demand from importer China. West Texas Intermediate crude tumbled as much as 4%, to $65.73 per barrel. Brent crude, oil's international benchmark, dropped 3.5%, to $68.14 per barrel, at intraday lows.

Bitcoin dropped as much as 2.1% to $45,716.65.

Read the original article on Business Insider

Comments are closed.