The main stock indexes spent the week processing the negative news from the previous week and looking for safety at critical price levels.
The Dow Industrial Average and the Nasdaq Composite recovered from their early morning lows.
At 2 p.m. ET, the Dow was down 0.1%, and the S&P 500 was also trading down 0.1%.
In addition, small-cap stocks (as measured by the Russell 2000 index) also saw losses, falling 0.2%. Finally, dropping by 0.3%, the Nasdaq suffered losses.
The Nasdaq and NYSE volume was lower than Friday at this time.
The price of crude oil futures jumped 3.3%. On Monday afternoon, the commodity cost roughly $96.12 per barrel.
The 10-year Treasury note’s yield also jumped, reaching 3.11% after a solid week before.
After a significant drop last week, stocks had difficulty recovering on Monday.
Markets took a nosedive on Friday after Federal Reserve Chair Jerome Powell made aggressive comments at Jackson Hole, Wyoming.
The leading indices had their best month since late 2021 in July, and August has gotten off to a good start thus far.
To make matters worse, resistance from the 200-day moving average entered the picture around the middle of the month, resulting in a sharp decline.
This week, the 50-day moving averages will be tested for the leading indices.
As the market rose on Monday, energy companies led the way higher as tech stocks lagged. With a gain of 2.2%, the Energy Select Sector SPDR (XLE) is building the right half of a cup base at the 93.41 price level.
Gainers: Netflix and Pinduoduo
Netflix (NFLX) rose by 1.6% on bourses other than the Dow Jones.
Bloomberg reported that the streaming platform might set the price of its ad-supported tier between $7 and $9, sending the stock price soaring.
The most popular ad-free subscription now costs $15.49 per month, but the soon-to-debut ad-supported service will reportedly cost less.
After a rough 2021, when a series of bad quarters prompted a big shareholder flight, Netflix stock has struggled thus far in 2022.
However, with a loss of just one million subscribers in the quarter ending in June, instead of the two million predicted, the company’s financial report for July was cause for optimism.
On the other hand, Pinduoduo (PDD) rose by more than 16% after the China-based e-commerce business reported excellent quarterly profits.
In the afternoon session, shares briefly traded above a 68.81 purchase target before retracing. The stock has only dropped 2% from its entry point.
Pinduoduo had a 36% year-over-year increase in income.
