Stocks fell due to weak US manufacturing and energy stocks slide

From Nasdaq: 2024-06-03 13:00:30

Stocks stumbled today with the S&P 500, Dow Jones, and Nasdaq all down. Economic concerns and falling energy stocks led the decline, despite an initial boost from Nvidia’s announcement of new AI chips. M&A activity pushed Waste Management to buy Stericycle for $5.8 billion, while Becton Dickinson purchased Edwards Lifesciences’ critical care unit for $4.2 billion.

The US May ISM manufacturing index unexpectedly dropped to 48.7, missing expectations. April construction spending also fell unexpectedly. Chinese manufacturing data showed improvement, boosting global economic optimism. The ECB is expected to cut rates by 25 bp, with the markets analyzing this week’s US payroll report for potential rate cut clues.

Minneapolis Fed President Kashkari foresees a prolonged interest rate hold, with markets predicting a slim chance of a rate cut in the upcoming FOMC meetings. Positive Q1 earnings results are supporting stocks, with about 81% of S&P 500 companies beating estimates. Overseas markets show a mixed trend, with European bond yields falling and swaps predicting a probable ECB rate cut.

Nvidia surged more than 3% after announcing new AI chips at a conference. Energy stocks tumbled with the price of WTI crude dropping, causing declines in Diamondback Energy, Haliburton, and others. Autodesk rose over 8% following a board investigation, while Paramount Global gained over 7% on a new offer. Boeing led the Dow Jones after resuming aircraft deliveries to China, and Stericycle surged over 14% after its acquisition by Waste Management.



Read more at Nasdaq: Stocks Turn Lower on Weak US Manufacturing Activity and Slide in Energy Stocks