By Markus Heitkoetter
What’s more exciting than Shark Week?
With this week’s Fed Statement in focus, stocks kicked off the week with losses across the board. And with back-to-back-to-back losses, the S&P had its worse 3-day slide since February.
There were no major reports today, but there was plenty going on.
Here are 3 reasons stocks were lower today:
Global Weakness – Japan’s Nikkei lost 3.5% and disappointing data in China led to a 3.2% drop in the Shanghai Composite.
Brexit Concerns -With Britain’s decision to stay in the European Union coming up in just 10 days, the prospect of a “Brexit” is on everyone’s mind. And things just got interesting…Although UK political parties support staying in the EU, polling shows that the outcome is just too close to call!
Fed Policy – Traders are convinced that the Fed will postpone its decision to raise rates. But with markets struggling, traders wonder if the Fed will be aggressive and suggest the possibility of a rate hike in July? Or give equity markets a bit of a breather and hint at a rate hike towards the end of the year?
With big losses overnight in Asia, U.S. stocks gap lower at the open.
The major indices managed to fill the gap in the morning. But stocks sold-off in the afternoon, then dropped even lower with a sell-off into the close.
Here’s where the major indices ended the day:
The S&P finished with a 0.8% loss. Down 17 points, the S&P ended at 2,079.
The DOW ended 0.7% lower. Dropping 133 points, the DOW closed at 17,732.
The NASDAQ was down 0.9%. With a 46 point loss, the NASDAQ finished at 4,848.
Crude Oil (CL) continued its slide from Friday and opened the session with a 1.6% loss. But CL managed to erase most of its losses from earlier in the session, finishing the day just 0.4% lower at $48.88.
In other news, Microsoft (MSFT) made headlines today after announcing that it is buying LinkedIn (LNKD) for $26 billion. LNKD jumped 47% on the news and ended the day at $192.21.
Tomorrow’s economic calendar features Retail Sales Data at 8:30am ET