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Global Markets Update: US Stocks Fall After Slow Service Growth

News

US stocks fell Monday as investors weighed whether the US central bank would pause rate hikes after service sector growth slowed.

The S&P 500 fell 8.58 points, or 0.2%, to 4,273.79. The Dow Jones Industrial Average lost 199.90 points or 0.6% at 33,562.86. The Nasdaq composite fell 11.34 points, or 0.1%, at 13,229.43.

According to one report, US services sectors grew less than economists had expected in May as new orders slowed.

Investors’ focus is on the monthly inflation data to be released next week.

The Federal Reserve will also release its monetary policy report next week.

In the bond market, the yield on the 10-year Treasury fell to 3.68% from 3.70% at the end of Friday. The 2-year Treasury fell from 4.51% to 4.45%.

Shares of Apple Inc fell 0.8% after the company unveiled an augmented reality headset called the Vision Pro.

During intraday trading, Apple rose as much as 2.2% to an all-time high.

Currencies

The US dollar fell from 139.94 to 139.63 Japanese yen. The euro rose from $1.0712 to $1.0715.

Canada

Canadian stocks fell Monday as energy and financial stocks lost ground. The S&P/TSX composite index of the Toronto Stock Exchange ended 93.01 points or 0.5% lower at 19,931.62.

Europe

European stocks fell Monday with the pan-European STOXX 600 index down 0.4%.

The UK FTSE 100 fell 0.1% to 7,599.99. The German DAX fell 0.5% to 15,963.89. The French CAC 40 was down 1% at 7,200.91.

Asia

Asian stocks rose on Monday.

Hong Kong’s Hang Seng Index rose 0.8% to 19,108.50. China’s Shanghai Composite gained 0.1% at 3,232.44.

Japan’s Nikkei 225 rose 2.2% to 32,217.43.

The Australian S&P/ASX 200 index ended 1% higher at 7,216.30. New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to finish at 11,880.90.

Markets in Singapore, Seoul, Taipei, Manila and Jakarta gained.

Energy prices

Brent crude for August delivery rose 58 cents on Monday to $76.71 a barrel. The US crude oil benchmark for July delivery rose 41 cents to $72.15 a barrel.

Saudi Arabia said it would scale back crude oil production in hopes of driving up the price.

Natural gas for July delivery rose 8 cents to $2.25 per 1,000 cubic feet.

Precious metal

Gold for August delivery rose $4.70 to $1,974.30 an ounce. Silver for July delivery fell 11 cents to $23.64 an ounce.

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Updated: June 06, 2023, 2:41 AM IST


Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.