The stock market fell on Monday despite recently posting its best month since 2020, as investors continue to worry about a potential slowdown in corporate earnings, more rate hikes from the Federal Reserve and whether the economy will fall into a recession.
Stocks opened lower: The Dow Jones Industrial Average fell 0.2%, nearly 100 points, while the S&P 500 lost 0.5% and the tech-heavy Nasdaq Composite 0.4%.
All three major indexes posted their best month since 2020 last Friday, with the Dow gaining nearly 7% in July, while the S&P 500 rose over 9% and the Nasdaq more than 12%.
Energy stocks led the market declines on Monday as oil prices tanked, with the likes of Exxon Mobil, Occidental Petroleum and Chevron each declining by 2% or more.
Investors are now looking ahead to another big week of earnings: Of the more than half the companies in the S&P 500 that have reported earnings so far, over 70% have beaten analyst expectations, according to FactSet data.
Despite some positive results, a good deal of uncertainty remains in markets, especially after the Federal Reserve hiked interest rates by another 75 basis points last Wednesday in a bid to bring down high inflation.
What’s more, fears of an economic downturn continue to abound after data last Thursday showed that US GDP shrank by 0.9% in the second quarter, marking a second consecutive quarter of negative economic growth and indicating a technical recession.