- US stocks were modestly lower as Monday's trading session got underway.
- Investors appear to be growing more concerned about recession rather than inflation spiking up again.
Stocks traded lower Monday as investors navigate through signs of peaking inflation alongside concerns about the US running into recession next year.
Investors have only nine full trading sessions left in 2022 and the S&P 500 remains sharply lower, down about 19%. The S&P 500 fell by 2.1% last week, marking a second straight weekly decline, on fears of a higher-for-longer scenario for rates.
Among individual stocks Monday, Tesla shares rose after CEO Elon Musk asked his Twitter followers whether he should quit running the social media site and a majority of poll voters agreed. Musk said he would "abide by the results". Tesla investors and analysts have expressed concern that Musk's focus on Twitter is hurting Tesla.
Here's where US indexes stood at the 9:30 a.m. opening bell on Monday:
- S&P 500: 3,848.36, down 0.10%
- Dow Jones Industrial Average: 32,887.42, down 0.10% (33.04 points)
- Nasdaq Composite: 10,654.59, down 0.47%
For markets, unknown factors "remain considerable, namely how quickly inflation (particularly the core rate) will fall, how severe any recession will be, and when central banks will stop raising and start cutting rates," Rupert Thompson, chief economist at Kingswood, wrote in a note. "We continue to believe markets face a few more months yet of volatility before the improving outlook becomes clear enough to engender a sustained recovery in equity markets."
Here's what else is happening today:
- "Dr. Doom" economist Nouriel Roubini said the world is on a "slow-motion train wreck" and an oncoming recession will be severe.
- A next-generation nuclear reactor project backed by Bill Gates and the US Department of Energy has hit a wall because its only source for uranium is Russia.
In commodities, bonds, and crypto:
- West Texas Intermediate crude gained 0.4% to $74.60 per barrel. Brent crude, the international benchmark, picked up 0.7% to $79.56.
- Gold edged up 0.1% to $1,802.10 per ounce.
- The 10-year Treasury yield rose 10 basis points to 3.55%.
- Bitcoin rose about $5 to $16,745.85.