U.S. markets had a whirlwind day on Monday. The Dow Jones industrial average initially plunged nearly 400 points after remarks from Federal Reserve Chair Jerome Powell before rebounding and ending the day above the record it set on Friday.
Meanwhile, the S&P 500 also set a record, and the Nasdaq closed with gains after spending most of the day in the red.
- S&P 500: 5,762.48 ⬆️ up 0.42%
- Nasdaq composite: 18,119.59 ⬆️ up 0.39%
- Dow Jones industrial average: 42,330.15 ⬆️ up 0.04%
- STOXX Europe 600: 522.89 ⬇️ down 0.98%
- Nikkei 225: 37,919.55 ⬇️ down 4.8%
- SSE composite index: 3,336.50 ⬆️ up 8.06%
- Bitcoin: $63,651.50 ⬇️ down 3.05%
U.S.: Powell speech rattles markets before correcting
Powell said in prepared remarks Monday that the Federal Reserve would continue cutting interest rates but left the timeline open and suggested he wasn’t in a rush as the market is currently “recalibrating.” Despite saying that the economy “is in solid shape,” all three major U.S. indexes dropped ahead of and shortly after Powell’s speech. Still, within a few hours of the Dow’s triple-digit plummet, indexes were in the green again. The Dow closed barely above its Friday record, up 0.04%. The Nasdaq closed up 0.38%, and the S&P 500 rose 0.42%, setting a new record from its high last week.
Europe: Stocks slide as China dominates
European stocks slid Monday from record highs on Friday, led by a 12% drop in Jeep- and Ram-maker Stellantis. The company issued a profit warning on weaker-than-expected sales “across most regions” and increased competition out of China. The STOXX Europe 600 ultimately closed down 0.98%.
China: Stimulus shot and mortgage cuts boost markets
The Shanghai Stock Exchange index posted an 8.06% gain Monday after a record-setting week last week, marking a continued lift from stimulus measures out of Beijing. As part of the latest flurry of policies, China’s central bank announced Sunday it would enact rate cuts on existing mortgages by the end of October.
Japan: Shigeru Ishiba news spooks investors
The Nikkei 225 dropped 4.8% as investors feared incoming Prime Minister Shigeru Ishiba will help clear the way for the Bank of Japan to raise interest rates. He has previously supported the move, which would aim to strengthen the yen and make Japanese exports less competitive. But automakers Honda, Toyota, and Mazda all dropped more than 7% on the news.