The Nasdaq fell on Monday after weak data on China’s economy, but the Dow and S&P 500 were little changed as stocks recovered from steeper losses earlier in the session and investors moved into defensive sectors.
Economically sensitive groups such as energy, materials and financials were weaker after China’s factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations
Healthcare (.SPXHC), utilities (.SPLRCU) and consumer staples (.SPLRCS) — generally regarded as defensive sectors — led the way, while the S&P 500 and Dow remained near all-time highs reached on Friday.
“There is always a natural digestion period after a strong run-up in stocks,” said Kristina Hooper, chief global market strategist at Invesco. “Hitting some records last week, certainly there is a likelihood that you get some kind of pause.”
