Technology stocks are faring well in the U.S. market on Monday, even as the mood remains somewhat bearish amid concerns about the spread of the delta variant of Covid-19 in Europe and fresh restrictions imposed in Portugal, Germany and Spain.
A sell-off in the energy space due to a sharp drop in oil prices ahead of the upcoming meeting of the Organization of the Petroleum Exporting Countries and allies, is weighing on the market.
Concerns about valuation following the climb to historic highs appear to be contributing as well for the market’s decline. Also, with some crucial economic data, including non-farm payroll employment report for the month of June, consumer confidence, and reports on manufacturing activity and factory orders for June, due out later in the week, investors appear reluctant to make significant moves.
Among the major averages, the Dow is down 168.89 points or 0.49 percent at 34,264.95, after dropping to a low of 34,186.13 earlier this afternoon. The S&P 500, which is moving along the flat line, is little changed at 4,281.37, while the tech-laden Nasdaq Composite Index is gaining 99.69 points or 0.7 percent at 14,460.08, after hitting a new high at 14,474.22.
Boeing shares are down nearly 4 percent on reports the aircraft maker is unlikely to receive certification for its 777X long-range aircraft until mid-to-late 2023.
Chevron, American Express and General Electric are down 2 to 3 percent.
Technology stocks Intel and Apple are gaining 3.2 percent and 1.5 percent, respectively. Microsoft is up by about 1.2 percent. Nvidia shares rose amost 5 percent.
In overseas trading, European stocks closed notably lower on Monday, weighed down by concerns about fresh travel-related restrictions due to the spread of the delta variant of Covid-19 in several parts of the continent.
According to reports, Portugal, Spain and Germany have issued new travel restrictions, aiming to limit the spread of the more contagious Delta coronavirus variant.
The U.K.’s FTSE 100 declined 0.88%, Germany’s DAX ended 0.34% down and France’s CAC 40 lost 0.98%.
Asian stocks ended on a muted note Monday, as inflation continued to be a worry and a spike in coronavirus cases across several countries in the region over the weekend led to lockdowns and restrictions in some areas.
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