With several major companies reporting quarterly results this week, as well as the upcoming June inflation report and what it could mean for the economy, the stock market fell on Monday.
This week's inflation report is expected to be red hot.
The markets opened lower, with the S&P 500 losing 0.7% and the Dow Jones Industrial Average falling 2%.
The strong labor market will embolden the Federal Reserve to continue hiking rates aggressively as it looks to bring down inflation, though stocks are coming off of a rare winning week after a better-than- expected jobs report on Friday.
The yield curve remained inverted on Monday as recession fears continued to weigh on stocks.
The stock market took a hit from negative Covid headlines out of China, with the first case of the BA.5 subvariant reported in Shanghai.
The U.S. benchmark oil price is $103 per barrel, while international benchmark crude is up to more than $106 per barrel.
Even as the platform prepares to take legal action to enforce the merger agreement, shares of the social media company fell after Musk said he wasterminating his deal to buy it.
The stock market is starting the week for sale as there is apprehension ahead of earnings. The hot consumer price index report is expected to surge higher than the 8.6% level reached in May, causing investors to remain nervous.
There will be a lot of earnings this week. On Tuesday and Wednesday, Delta Air Lines and Pepsi will report their quarterly results. Major Wall Street banks will report at the end of the week, which will give investors more information about the health of the economy. Lindsey Bell, chief markets & money strategist for Ally, says that this earnings season will be watched very closely because of the possibility that we are currently in a mild recession. There has been a cry on Wall Street for earnings estimates to be reduced in a way that reflects the current operating environment and the stock market performance.
The stock market fell after the US economy added back 372,000 jobs in June.
ThePlatform plans legal action on the deal that MuskTerminating.
There is a risk that high inflation could become entrenched.
The price of oil has fallen below $100 per barrel for the first time.
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