Stocks gave back some of their recent gains on Monday (US time) after a day of choppy trading on Wall Street led the major indexes to a mixed finish.
The S&P 500 slipped 0.2 per cent in the final hour of trading after holding a slight gain for much of the afternoon.
The benchmark index is coming off a weekly loss, though it ended July higher, its sixth-straight month of gains.
It remains within 0.8 per cent of the all-time high it set a week ago.
The Australian sharemarket is set for a negative start to the session, with futures at 6.59am AEST pointing to a fall of 19 points, or 0.3 per cent, at the open.
A slide in technology, industrial, raw materials and communication companies weighed on the market. Energy stocks also fell in tandem with crude oil prices. Gains by health care stocks, utilities and a variety of retailers and other companies that rely on direct consumer spending helped keep the losses in check.
Demand for US bonds rose, pushing their prices higher and sending their yields lower. In another sign of caution among traders, small company stocks fell more than the rest of the market.
While investors are feeling bullish about strong company earnings reports, with more expected this week, they’re also nervous about the spread of the more contagious delta variant of the coronavirus and how it might impact the economic recovery.
“There’s hope the delta variant’s resurgence is going to peak soon, but that’s not clear,” said Rob Haworth, senior investment strategy director at US Bank Wealth Management. “That’s weighing on the market a little bit.”
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AP
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