U.S. stocks slipped Tuesday on more worrying data out of China and a spike in oil prices following the extension of Saudi Arabian production cuts.
The Dow Jones Industrial Average led markets lower, falling 0.6%. The S&P 500 lost 0.4% and the Nasdaq dipped 0.1%.
Goldman Sachs over the weekend lowered its odds of a recession this year to 15% from 20%. Friday's jobs data showed unemployment ticking up to its highest in more than a year and wage growth slowing, giving the Federal Reserve more reason to hold rates steady when it meets later this month.
Abroad, Chinese stocks fell today after data showed business activity grew at its slowest rate in eight months in August. Country Garden, the focal point of China's latest property development woes, just narrowly avoided default today when it paid bondholders $22.5 million of overdue interest on dollar-denominated bonds just before the end of its 30-day grace period. European equities recovered slightly from early losses to close down slightly.
Last week, stocks rallied on several encouraging labor market updates. The S&P 500 rose 2.5%, its best week since June, while the Dow gained 1.4% and the Nasdaq shot up 3.3%.
The Dow Jones Industrial Average fell 0.6%, or 196 points, as oil prices jumped to a 10-month high at the start of a holiday-shortened week.
Microsoft (MSFT) shares gained 1.5% after it announced it would expand its partnership with Abu Dhabi-based technology holding company G42 to develop artificial intelligence (AI) tools and offer cloud infrastructure in the United Arab Emirates.
Chevron (CVX) moved higher by 1.4% after Russia and Saudi Arabia vowed to keep oil production cuts in place until the end of the year, sending West Texas Intermediate (WTI) crude oil up 1.3% to trade at more than $86 a barrel, its highest level since November.
Shares of American Express (AXP) rose 0.2% after RBC Capital upgraded it to “Outperform” from “Sector Perform,” arguing that the credit card issuer’s focus on premium consumer and corporate customers makes it less vulnerable to government proposals that would limit late fee collection.
Apple (AAPL) shares edged up 0.1% after reports Apple TV+ subscriptions surged in July from its exclusive rights to broadcast Major League Soccer.
Walgreens Boots Alliance (WBA) led the index lower, dropping 3% as the company began searching for a replacement for CEO Rosalind Brewer.
Merck & Co. (MRK) shares dropped 2.1% while Nike (NKE) and Dow Inc. (DOW) both fell 2%.
Walt Disney Co. (DIS) shares dropped 0.5% after it urged customers of Charter Communications’s Spectrum cable system to use Hulu to access ABC, ESPN, and other channels after cutting its programming from Spectrum customers over a fee dispute.
