Wall Street closed lower after biggest month since 2020

August 1 (Reuters) – Wall Street closed lower after a choppy session on Monday with declines in ExxonMobil. (XOM.N) And other energy companies are weighing gains at Boeing (ban) Investors absorbed the largest monthly gain for the US stock market in two years.

Stocks gave up some of the strong rally from last week that was driven by bets that the Federal Reserve may not need to be as aggressive with rate hikes as some had feared.

Also thanks to stronger-than-expected second-quarter results, the S&P 500 and Nasdaq in July posted their biggest monthly percentage gains since 2020.

The S&P 500 rebounded between gains and declines on Monday as some investors became more cautious in the wake of this latest rally.

The Federal Reserve says it aims to tame inflation and cool demand by raising interest rates, but some investors and analysts fear its aggressive moves could increase unemployment and derail the economy.

“There are still a lot of questions about whether we are really out of danger economically, and maybe we are not,” said Tom Martin, senior portfolio manager at Global Investments in Atlanta. “We are not even close to the (economic) implications of the Federal Reserve raising interest rates.”

A report showed that US manufacturing activity slowed less than expected in July, with signs that supply constraints are easing. Read more

The data came on the heels of surveys suggesting factories across Asia and Europe struggled for momentum in July, as weak global demand and China’s severe COVID-19 restrictions slowed production. Read more

Oil prices fell due to demand concerns, which in turn affected the energy sector. S&P 500 . power indicator (.SPNY) It was the most declining among the 11 sectors.

Exxon Mobil stock fell 2.5% and was among the stocks that contributed the most to the S&P 500’s decline.

Friday’s monthly US jobs report will be analyzed for clues about the Fed’s next moves in its battle against decades-old high inflation.

The US central bank has raised interest rates by 2.25 percentage points so far this year and pledged to be data-driven in its approach to future increases.

Boeing Company (ban) It gained 6.1% after Reuters reported that the US aviation regulator approved the aircraft maker’s inspection and amendment plan to resume delivery of 787 Dreamliners. Read more

The S&P 500 is down about 14% in 2022. However, recent quarterly reports have shown that corporate earnings have been much more resilient than expected. Of the 283 S&P 500 companies that reported their results, 78% topped earnings estimates, according to Refinitiv data. The long-term average is 66%.

The S&P 500 fell 0.28% to end the session at 4,118.59 points.

The Nasdaq fell 0.18% to 12,368.98 points, while the Dow Jones Industrial Average fell 0.14% to 32,798.60 points.

US House Speaker Nancy Pelosi is scheduled to visit Taiwan on Tuesday. China has warned that its military will not “stand idly by” if it visits the self-governing island claimed by Beijing. Read more

PerkinElmer Company (PKI.N) It jumped after the medical diagnostics company said it would sell some of its business with the brand name to private equity firm New Mountain Capital for $2.45 billion in cash. Read more

Via the US stock market (.AD.US)Declining stocks outnumbered advancing stocks by 1.1 to one.

S&P 500 set 5 new highs and 31 new lows; The Nasdaq recorded 68 new highs and 98 new lows.

Volume on US exchanges was relatively light, with 10.3 billion shares traded, compared to an average of 10.8 billion shares over the previous 20 sessions.

Additional reporting by Aniruda Ghosh, Devik Jain and Bansari Mayor Kamdar in Bengaluru and Noel Randywich in Auckland, California. Edited by Aurora Ellis

Our criteria: Thomson Reuters Trust Principles.