U.S stocks slightly dipped on Monday and ended the day's trade in the red due to global growth concerns. According to NextCandle.com's forecast, U.S indices should lose ground on Tuesday: the Dow was given a 71% probability of hitting a lower target, slumping from 13583.65 to 13552.09. The S&P 500 was also given a 70% probability of hitting a lower target, slipping down from 1455.88 to 1453.10, and finally Nasdaq was also given a 67% probability of hitting a lower target, edging down from 3112.35 to 3107.57.
U.S Stocks begin the week in downfall
U.S. stocks finished slightly lower on Monday, as concerns about the limited growth of a lagging economy kept investors wary on a rather slow day of trading. Last week, the U.S. Labor Department's monthly jobs report showed that more jobs were added than expected and that the unemployment rate surprisingly dropped below 8%.
The news did in fact give a surge of confidence, but the excitement was short-lived, as investors fear a potentially mediocre earnings season. It seems like investors are reluctant to take too many risks ahead of corporate announcements. According to forecast, overall corporate earnings are expected to decline 1.3%, which would be the worst for earnings period since 2009's third quarter.
Discouraged investors turn their attention towards Europe
European finance ministers met in Luxembourg on Monday to discuss Spain, Greece and other issues concerning the European Union's debt crisis, including what needs to be done to establish a single supervisory authority for euro zone banks.
The meeting served as a formal launch of the European Stability Mechanism, a crucial step forward in the Eurozone's battle against the debt crisis. German Chancellor Angela Merkel is facing protests by angry Greeks as she visits Greece on Tuesday for the first time since the crisis erupted, to bring a message of support to the debt-ridden nation struggling to remain in the euro.
All three European indices closed lower on Monday: Germany's DAX fell 1.28%, France's CAC 40 plunged 1.40%, and finally Britain's FTSE 100 shed 0.50%. Across the Pacific, Asian stocks also retreated on Monday: the Shanghai Composite slumped 0.59% on Monday, but made up for its losses on Tuesday with an impressive 1.97 gain; Hong Kong's Hang Seng lost 0.91% on Monday, but moved up another 0.61% on Tuesday. In Japan, markets were closed for a bank holiday on Monday, but Nikkei slumped 1.06% on Tuesday.
Back on the domestic side, U.S indices closed in the red on Monday: the S&P 500 shed 0.35% from 1,460.93 to 1,455.88; the Dow also closed slightly lower, with a 0.19% loss from 13,610.15 to 13,583.65. Finally, Nasdaq also finished with a 0.76% loss down from 3,136.19 to 3,112.35.