US Dow sheds more than 270 points

The US stock market finished session lower on Monday, 05 February 2024, snapping two days winning streak, as profit taking resumed amid fading hopes of interest rates cut in March after Federal Reserve chair Jerome Powell statement. Meanwhile, lackluster results from McDonalds were also dampened investor sentiment.

Fed Chair Jerome Powell reiterated during an interview with "60 Minutes" on Sunday that the central bank is unlikely to cut interest rates next month.

At closing bell, the Dow Jones Industrial Average index declined 274.30 points, or 0.71%, to 38,380.12. The S&P500 index dropped 15.80 points, or 0.32%, to 4,942.81. The tech-heavy Nasdaq Composite index was down 31.28 points, or 0.2%, to 15,597.68.

Total 09 of 11 S&P500 sectoral indices declined, with material sector being bottom performer, falling 2.52%, while information technology sector was top performer, rising 0.6%.

ECONOMIC NEWS: The Institute for Supply Management released a report showing U.S. services PMI climbed to 53.4 in January from a downwardly revised 50.5 in December, with a reading above 50 indicating growth in the sector. The report also said the prices index surged to 64.0 in January from 56.7 in December, indicating a substantial acceleration in the pace of price growth.

ENERGY NEWS: Crude Oil prices settled higher Monday after U.S. retaliatory strikes against Iranian forces and allied militias over weekend. The West Texas Intermediate contract for March rose 50 cents, or 0.69%, to settle at $72.78 a barrel. The Brent contract for April gained 66 cents, or 0.85%, to settle at $77.99 a barrel.

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