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US indices retreated after strong gains in the last two sessions on Monday, June 27, as inflation and rate fears returned to haunt investors, leaving most mega-cap growth stocks in the red.
The S&P 500 was down 0.30% to 3,900.11. The Dow Jones lost 0.20% to 31,438.26. The NASDAQ Composite fell 0.72% to 11,524.55, and the small-cap Russell 2000 was up 0.34% to 1,771.74.
However, the positive US factory data from the Commerce Department on Monday may have relieved traders from a barrage of discouraging market trends over the past weeks.
Factory orders for durable goods surged more than expected in May, suggesting business spending remained steady despite inflation and rising interest rates.
New orders for durable goods rose 0.7% in May, from an increase of 0.4% in the prior month. The factory orders support Fed Chair Jerome Powell's belief that the economy is resilient enough to handle rate hikes without slipping into a recession.
Additionally, the data showed that the core capital goods orders, a closely watched proxy for business spending plans, rose 0.5% in May after increasing 0.3% in the previous month.
Meanwhile, energy stocks saw modest gains on rising oil prices. Likewise, small-cap and semiconductor stocks outperformed the broader market on Monday.
Traders also reacted with caution after reports that Russia defaulted on its foreign debt for the first time since 1918, suggesting the sanctions could be starting to take a toll on the exchequer.
The energy and utilities sectors were the top movers of the S&P 500. Eight of the 11 segments stayed in the red. The communication services and consumer discretionary sectors were the laggards.
Shares of crypto exchange Coinbase Global, Inc. (COIN) declined more than 11% in intraday trading after analysts downgraded the stock due to the turmoil in the crypto market.
Spirit Airlines, Inc. (SAVE) stock plunged 7.5% on Monday after reports that advisory firm Institutional Shareholder Services recommended Spirit's shareholders vote for the proposed merger with Frontier Airlines. The Frontier Group Holdings, Inc. (ULCC) stock fell 11.74%.
Footwear company Nike, Inc. (NKE) stock fell by 2.12% in intraday trading ahead of its quarterly financial results in the aftermarket hours on Monday.
In the energy sector, Exxon Mobil Corporation (XOM) increased by 2.30%, Chevron Corporation (CVX) gained 1.87%, and Shell plc (SHEL) soared by 1.75%. PetroChina Company Limited (TR) and ConocoPhillips (COP) advanced 2.13% and 2.15%, respectively.
In utility stocks, American Electric Power Company, Inc. (AEP) rose 1.47%, Exelon Corporation (EXC) surged 1.39%, and Xcel Energy Inc. (XEL) jumped 1.12%. WEC Energy Group, Inc. (WEC) and DTE Energy Company (DTE) ticked up 2.16% and 1.16%, respectively.
In the communication services sector, Alphabet Inc. (GOOGL) decreased by 1.82%, The Walt Disney Company (DIS) tumbled by 1.14%, and Electronic Arts Inc. (EA) fell by 3.53%. Warner Bros. Discovery, Inc. (WBD) lost 1.40%, while NetEase, Inc. (NTES) added 2.44%.
In the crypto space, Bitcoin (BTC) and Ethereum (ETH) declined 1.92% and 2.27%, respectively. The global crypto market cap tumbled 2.02% to US$936.32 billion at 4:07 pm ET on June 27.
Gold futures were down 0.36% to US$1,823.80 per ounce. Silver increased by 0.06% to US$21.172 per ounce, while copper rose 0.47% to US$3.7622.
Brent oil futures increased by 1.86% to US$111.13 per barrel and WTI crude was up 2.04% to US$109.82.
The 30-year Treasury bond yields were up 1.92% to 3.321, while the 10-year bond yields rose 2.73% to 3.209.
US Dollar Futures Index decreased by 0.23% to US$103.720.
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