STOCKS MARKET NEWS: Minimum tax to hit these industries hardest, stocks whipsawing, oil, gas lower

Symbol Price Change %Change
I:DJI $33,912.44 151.39 0.45
SP500 $4,297.14 16.99 0.40
I:COMP $13,128.05 80.87 0.62

U.S. stocks were whipsawing
entering Tuesday morning with all three indexes trading cautiously throughout the overnight. 

Stocks on Wall Street bounced back and closed higher Monday, extending the market’s recent winning ways as investors look ahead to several updates from retailers this week. 

The S&P 500 rose 16.99 points, or 0.4%, to 4,297.14 on Monday. The Dow added 151.39 points, or 0.5%, to 33,912.44. The Nasdaq gained 80.87 points, or 0.6%, to 13,128.05. The Russell 2000 rose 4.73 points, or 0.2%, to 2,021.35. 

The market got off to a bumpy start as traders reacted to news overnight Sunday China’s central bank cut a key interest rate, acknowledging more needed to be done to shore up its economy.

The move is the latest warning for markets already on edge over record-high inflation and fears about recessions in the U.S. and elsewhere. China is the world’s second-largest consumer of crude oil, so the news weighed on energy prices.

U.S. crude oil prices slumped 2.9% on worries about the global economy and weighed heavily on energy stocks.

Nine of the S&P 500’s 11 sectors rose Monday, with consumer staples and utilities leading the gains. Energy and materials stocks declined with commodity prices. 

Stocks have generally rallied since mid-June. Signs that inflation in the U.S. peaked earlier this summer have investors hoping the Federal Reserve will raise rates at a slower pace starting in September.

That in turn has dragged yields on government bonds down from their highs of the year and given a boost to the stock market. The yield on 10-year U.S. Treasuries slipped to 2.790% from 2.848% Friday.

Some investors say stocks have fallen far enough this year to become attractive buying opportunities again.

The S&P 500 has climbed 17% since June 16 but remains down 9.8% in 2022. 

“When the S&P 500 falls, there’s a knot in your stomach, but when you’re scared — that’s the right time to be buying,” said Peter Boockvar, chief investment adviser of Bleakley Financial Group, who is buying quality value stocks.

Meanwhile, Asian shares mostly rose Tuesday after Monday’s rebound on Wall Street, despite regional investor risks reflected in negative economic data out of China. 

The benchmark in Tokyo was little changed, erasing earlier gains, but indexes in South Korea and Australia gained. Hong Kong’s benchmark slipped, while Shanghai shares rose.

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