Closing Stock Market SummaryThe S&P 500 fell 3.2% on Monday, closing below the 4,000 level in a broad-based retreat led by the growth stocks. The Nasdaq Composite (-4.3%) and Russell 2000 (-4.2%) both fell more than 4.0% while the Dow Jones Industrial Average outperformed on a relative basis with a 2.0% decline.
The persistently weak price action, while not quite panicky today, remained a hindrance to risk sentiment at a time when the market has been contending with growth concerns. The latter have been tied to rising interest rates, Russia's war in Ukraine, and China's COVID-related lockdowns (which, according to Bloomberg, caused Saudi Arabia to cut oil prices for Asian buyers due to weak demand).
Ten of the 11 S&P 500 sectors closed lower with selling interest accelerating in the last 45 minutes of action.
The energy sector (-8.3%) was the worst performer, falling 8% as weaker oil prices ($103.43/bbl, -6.57, -6.0%) contributed to some profit-taking activity in the space. The biggest drags on the market, though, were the information technology (-3.9%) and consumer discretionary (-4.3%) sectors. The consumer staples sector (+0.1%) eked out a gain.
Growth stocks continued to be loss leaders, evident by the 4.4% decline in the Vanguard Mega Cap Growth ETF (MGK 192.06, -8.63). For comparison, the Invesco S&P 500 Equal Weight ETF (RSP 142.93, -4.32) fell 3.0%, which was still a huge decline in its own right.
Uber (UBER 23.05, -3.02, -11.6%), in particular, fell nearly 12.0% after CNBC reported that the company was planning to cut costs, exacerbating the underlying growth concerns in the market.
In addition, Palantir (PLTR 7.46, -2.02, -21.3%) dropped 21% on disappointing revenue guidance while Rivian (RIVN 22.78, -6.01, -20.9%) also dropped 21% amid news that Ford Motor (F 13.37, -0.84, -5.9%) and a large unknown seller were planning to unload millions of shares, according to CNBC.
Away from equities, the Treasury market attracted some buying interest amid the carnage in stocks. The 10-yr yield, which hit 3.20% overnight, backed down to 3.05% by the settlement (down four basis points). The 2-yr yield declined six basis points to 2.60% after hitting 2.73% overnight. The U.S. Dollar Index was little changed at 103.70.
Monday's economic data was limited to Wholesale Inventories for March, which increased 2.3% m/m in March (Briefing.com consensus 2.3%) following a revised 2.8% increase (from 2.5%) in February. Looking ahead, investors will receive the NFIB Small Business Optimism Index for April on Tuesday.
- Dow Jones Industrial Average -11.3% YTD
- S&P 500 -16.3% YTD
- Russell 2000 -21.5% YTD
- Nasdaq Composite -25.7% YTD