The S&P 500 hovered around the flatline Tuesday as traders struggled to recover from sharp losses suffered in the previous session.
The broad index lost just 0.1%, along with the Nasdaq Composite 0.1%. The Dow Jones Industrial Average lost 52 points or 0.1%.
The major averages suffered steep losses Monday, with the Dow dropping nearly 500 points. The S&P 500 and Nasdaq each lost more than 1%, after protests in mainland China against the country’s zero-Covid policy started over the weekend. This led to worries over the potential for Chinese Covid protocols could once again hamper global supply chains.
“There are some real reasons to be cautious. The market’s rallied a lot this quarter, and there are some concerns that things are going to slow, so I think it’s a kind of balanced risk-reward,” Trivariate Research’s Adam Parker said Monday on CNBC’s “Closing Bell: Overtime.”
“I think there was an excuse with maybe some China slowdown fears for people to collect a little profit that they made in the quarter,” he added.
Overnight, however, global markets seem to catch a reprieve as a Chinese official told reporters that 65.8% of people “over age 80” had received booster shots. On top of that, the government reported the first decline in Covid infections within mainland China in more than a week. This contributes to a rally in the Hong Kong and Shanghai markets.
On the data front, the latest reading on consumer confidence is set to release at 10 a.m., with more data on topics such as gross domestic product and jobs expected later in the week.
Fed Chair Jerome Powell is scheduled to speak at the Hutchins Center on Fiscal and Monetary Policy at Brookings on Wednesday. Investors will be listening for clues into if the central bank will slow or stop interest rate hikes.
Source: CNBC
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