NYSE Glitch Jolts Market: Mixed Reactions to Manufacturing Data

U.S. stocks closed mostly lower amid volatile trading linked to a NYSE glitch affecting 60 stocks and weak manufacturing data raising concerns about economic growth. The S&P 500 and Nasdaq gained modestly, while the Dow Jones fell. Traders anticipate potential Fed rate cuts based on recent data.

Reuters | Updated: 04-06-2024 01:34 IST | Created: 04-06-2024 01:34 IST
NYSE Glitch Jolts Market: Mixed Reactions to Manufacturing Data
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U.S. stocks finished mostly lower in a choppy session on Monday following soft manufacturing sector data and as a glitch on the NYSE briefly caused trading halts in several equities. A glitch at the New York Stock Exchange had triggered massive swings in the shares of Berkshire Hathaway and Barrick Gold. Trading in at least 60 NYSE-listed stocks were halted due to the volatility, before the bourse fixed the technical issue and activity resumed.

Markets also weighed data showing U.S. manufacturing activity had slowed for the second straight month, raising concerns of weakening economic growth. "What you're seeing when you look at the overall market is that it is trading down based on growth concerns relative to the continuation of more sluggish economic data," said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta.

"Not only is the overall market down, the 10-year Treasury note is down about 8 basis points, and that's another signal that investors are concerned about economic growth because they're now buying the 10-year," Lerner added. Traders see a 59% chance that the Fed will begin cutting rates in September, up from about 53% before the ISM data was released, according to the CME's FedWatch tool. Benchmark U.S. 10-year note yields fell to a two-week low following the soft manufacturing data.

According to preliminary data, the S&P 500 gained 5.91 points, or 0.11%, to end at 5,283.39 points, while the Nasdaq Composite gained 93.62 points, or 0.56%, to 16,828.63. The Dow Jones Industrial Average fell 110.89 points, or 0.29%, to 38,575.43. Nvidia rose after CEO Jensen Huang revealed that the company's next-generation AI chip platform would be rolled out in 2026.

Shares of other megacaps, including Apple, Amazon and Meta gained. Alphabet, Microsoft , and Tesla lost ground. GameStop soared after a weekend Reddit post from stocks influencer Keith Gill, also known as "Roaring Kitty", showed a $116 million bet on the gaming retailer.

Investors will be eyeing a data-packed week that includes surveys on the services sector, factory orders and Friday's closely watched nonfarm payrolls report, which could provide clues to the Fed's likely course of action with regards to rates.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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