Stocks Slip After Tepid Report on Economy

Services industries grew by less than expected
By Newser Editors and Wire Services
Posted Jun 5, 2023 3:44 PM CDT
After Week of Gains, Stocks Drift Lower
Displays show market news and data on the floor at the New York Stock Exchange.   (AP Photo/Seth Wenig)

US stocks drifted lower Monday to start what could be a quiet stretch following several weeks of gains. The S&P 500 fell 8.58 points, or 0.2%, to 4,273.79. The Dow Jones Industrial Average fell 199.90 points, or 0.6%, to 33,562.86. The Nasdaq composite fell 11.34 points, or 0.1% to 13,229.43. Treasury yields fell after a report said US services industries grew by less than economists expected last month, the AP reports. It's the latest mixed reading for a US economy that has defied forecasts for a recession but has begun to slow under the weight of higher interest rates.

Monday's dip comes after a weekslong rally carried Wall Street to its highest level since August. That's largely because a remarkably resilient job market has forced recession-callers to keep pushing out predictions for a downturn by another few months. Still, pressure remains on the economy from the squeeze of still-high inflation, interest rates, and cracks in the US banking system. "The market is starting to build a degree of optimism that I think is warranted," says Anthony Saglimbene, chief market strategist at Ameriprise Financial. "Whether it comes to fruition remains to be seen."

After helping to lead the market higher earlier in the day, a drop for heavyweight Apple helped drag the S&P 500 to its modest losses in the afternoon. It fell 0.8% after unveiling a long-rumored headset that will place its users between the virtual and real world. This upcoming week is light on earnings reports and top-tier economic data. Much attention is on next week, when the government will release the latest monthly updates on inflation at the consumer and wholesale levels. It’s also when the Fed will meet next on interest rate policy. (Read more stock market stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.