The Dow and the S&P 500 booked their first positive close in six sessions on Monday, with the blue-chip index scoring its best daily gain in about five weeks. However, Nasdaq ended 1% lower, extending its losing streak to a fourth session in a row.
“We are basically in a drifting market,” said Peter Cardillo, chief market economist at Spartan Capital Securities, pointing to modest gains Monday for the Dow and small-cap stocks, but pressure on Nasdaq.
“What we are seeing here is basically a market that’s very much gripped by seasonal factors,” Cardillo said. “We have had four or five days of declines. But the decline has been without any major volumes. That’s a good sign, which means the market isn’t likely to encounter any serious decline during the month of September.”
Chris Beauchamp of IG said investors “continue to expect further improvement in the global economy, providing further support for risk assets.” Investors are wary, however, ahead of inflation data out of China, the U.K. and the U.S., which could intensify concerns about rising prices and slowing growth.
Energy shares will remain in the spotlight, having been among the strongest performers on Monday, rising alongside the price of oil. Crude extended its gains in Asia this morning.