The stock market rose on Monday despite disappointing economic data from China, raising growing concerns about a global recession and a drop in oil prices; Meanwhile, investors are expecting a big week of retail earnings.
Stocks rose after 4 straight weeks of gains: the Dow Jones Industrial Average rose 0. 5%, or just about two hundred points, while the S
First, markets fell after weak economic knowledge of China overnight, with knowledge about the country’s consumers and factories well below expectations, while China’s central bank also cut interest rates amid an economic slowdown.
As China’s housing collapses and Covid lockdowns continue to weigh on economic growth, investors are worried about what this may mean for the global economy, reviving recession fears.
The value of oil fell on Monday as news from China raised concerns about a possible slowdown in demand: The value of the U. S. benchmark West Texas Intermediate index fell nearly 4% to $89 a barrel, while foreign-benchmark Brent crude is now trading at more than $94 a barrel. .
China’s knowledge “does not bode well for oil demand, especially when the country remains so committed to Covid zero,” says Craig Erlam, senior market analyst at Oanda, who predicts, “with cases on the rise, downward pressure on oil prices may intensify. “
Investor confidence took a hit after the New York Fed’s Empire State Manufacturing survey showed a sharp drop in production activity in August, with a reading of -31. 3, the lowest since May 2020.
The stock recently recorded its fourth straight week last Friday, with the S
Stocks first struggled after “disappointing” economic data from China, says Vital Knowledge founder Adam Crisafulli, Empire Fed’s “ugly” research is also cause for concern, he adds. The New York Fed survey is in fact “net negative, as it indicates a sharp slowdown in expansion dynamics, but inflation readings are malicious. “
Investors are expecting a week of big gains in which several major retailers, in addition to Home Depot, Lowe’s and Walmart, will get quarterly results. Knowledge of July retail sales is also expected on Wednesday.
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