- DJIA, dropped 173 points, or 0.7%, to close near 25,962.
- The S&P 500 fell 0.8% to finish around 2,901.
- The Nasdaq Composite ended lower by 0.7% at 7,949.
US stocks ended lower while geopolitical and macroeconomics keep the bulls at bay. The Federal Reserve's Jackson Hole Symposium later in the week and the FOMC minutes on Wednesday are now a key focus and profits are being swept off the top of these upside corrections - President Donald Trump lambasted the Federal Reserve for failing to slash interest rates.
At the same time, Italy's political situation has come back tot he fore with Prime Minister Giuseppe Conte's resignation following a spat with Matteo Salvini, leader of the League party weighing on risk appetite.
The Dow Jones Industrial Average, DJIA, dropped 173 points, or 0.7%, to close near 25,962 while the S&P 500 fell 0.8% to finish around 2,901. The Nasdaq Composite ended lower by 0.7% at 7,949.
Analysts at ANZ Bank note that the US 2-year, 10-year yield curve inverted last week for the first time since 2007, but a swift steepening yesterday may give some investors hope that the US can escape recession. "But if bond traders are telling us that a recession is around the corner, they haven’t been talking to their equity trading colleagues – US equities are only down 3.7% from their all-time highs."
The DJIA is en route to close the start of the week's opening gap and is back below the 26000s. Bears can target the 50% mean reversion level of the late Dec 2018 swing lows and mid-July swing market highs down in the 24500s.
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