By Vivien Lou Chen and Mark DeCambre
U.S. stocks shook off early losses to finish mostly higher Monday, with buying in consumer discretionary and information technology helping to buttress the broader market, despite a report that revealed slower-than-forecast growth in China that was blamed for early weakness.
How did major indexes perform?
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -1.86% slipped 36.15 points, or 0.1%, to 35,258.61, off an intraday low at 35,035.94, FactSet data show, leaving the blue-chip index still around 1% from its record close on Aug. 16.
The S&P 500 /zigman2/quotes/210599714/realtime SPX -1.90% rose 15.09 points, or 0.3%, to reach 4,486.49, after slipping to a Monday low at 4,447.47. The gain marked the fourth straight for the broad-market index, representing its longest win streak since Aug. 25.
The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -1.55% gained 124.47 points, or 0.8%, to 15,021.81, marking its fourth consecutive rise and its longest win streak since Sept. 7.
On Friday, after the release of stronger-than-forecast retail sales figures, the Dow Jones Industrial Average rose 382 points, or 1.1%, to 35,295, the S&P 500 increased 33 points, or 0.8%, to 4,471, and the Nasdaq Composite gained 74 points, or 0.5%, to 14,897.
What drove the market?
Buying in consumer discretionary /zigman2/quotes/210600228/delayed XX:SP500.25 -1.42% , technology shares /zigman2/quotes/207444675/composite XLK -0.83% and communication services /zigman2/quotes/210600403/delayed XX:SP500.50 -3.00% gave the broader market a bit of a boost, as investors attempted to shake off an earlier dour mood on Wall Street that had been partly prompted by concerns about the economic health of the world’s second-largest economy.
China reported 4.9% year-over-year growth in the third quarter , a big slowdown from the 7.9% recorded in the second quarter, as construction output slowed.
Hand-wringing about stuttering global growth and surging inflation has helped to check the bulls somewhat, as crude-oil futures touched multiyear highs before retreating on the day. Concerns about inflation also were on display across the pond, before trickling over into U.S. markets.
U.K. bond yields /zigman2/quotes/211347169/realtime BX:TMBMKGB-02Y -3.43% rose after Bank of England Gov. Andrew Bailey said the central bank would have to act to quell inflation , raising the prospect of rate increases in the country. U.S. central bank officials, as a whole, haven’t been as alarmed by the rise in prices.
A stunning rally in energy prices has been cited as further reason to cast doubt on the prospect for strong global growth in the wake of the COVID-19 pandemic, with analysts concerned that the U.S. could be stunted.
Read: Here’s when soaring oil prices could make the stock market sputter “An astonishing increase in the price of energy has seen European natural gas prices rise almost fivefold since the start of the year, fueling inflationary fears and concerns about a global slowdown,” wrote Seema Shah, chief strategist at Principal Global Investors, in emailed comments.
However, the strategist said that the U.S. may be more insulated from the effects of that crisis, which she said could fuel outperformance by U.S. markets.
“For its part, however, the U.S. is in a relatively good position to weather the shock. It’s energy self-sufficient, and consumers have significant excess savings to absorb higher prices. In contrast, as a large net importer of energy, Europe is more exposed,” Shah wrote.