Stocks fell on Monday as Wall Street's recent momentum lost some steam in response to January's blockbuster jobs report on Friday. The Dow Jones Industrial Average slipped over 30 points, while the S&P 500 Index and Nasdaq Composite fell 0.6% and 1%, respectively.
Here's how the market settled on Monday:
S&P 500 Index (SPY ): -0.61% or -25.40 points to 4,111.08
Dow Jones Industrial Average (DIA ): -0.10% or -34.99 points to 33,891.02
Nasdaq Composite Index (QQQ ): -1.00% or -119.50 points to 11,887.45
Monday's moves followed losses in the previous session as hopes that the Federal Reserve would pause its rate hiking campaign this year in response to signs that inflation is easing in parts of the economy were dashed by continued labor market strength. That previous positive momentum has led the S&P 500 up over 7% year-to-date, while the Nasdaq and Dow are up over 14% and 2%, respectively.
Still, some outlooks are remaining rosy despite murky macroeconomic headwinds, with Goldman Sachs (GS ) cutting its recession probability for the next 12 months to 25%, down from 35% previously.
"Continued strength in the labor market and early signs of improvement in the business surveys suggest that the risk of a near-term slump has diminished notably," the firm said in a client note on Monday.
In the news on Monday, Dell Technologies (DELL ) announced Monday it will cut about 6,650 jobs, or roughly 5% of its global workforce, according to a filing with the U.S. Securities and Exchange Commission (SEC). In a memo to employees, co-Chief Operating Officer Jeff Clarke said the layoffs were made in effort to "stay ahead of downturn impacts" linked to waning demand for PCs and laptops globally.
Google (GOOGL ) announced Monday that it will launch its own ChatGPT competitor called Bard in the coming weeks. The artificial intelligence chatbot is powered by the search engine giant's language model LaMDA, or Language Model for Dialogue Applications. The technology will be open to "trusted testers" before a larger public rollout, the company said in a blog post Monday.
Looking ahead, investors still have another big week for quarterly corporate earnings, including names like Disney (DIS ), Uber Technologies (UBER ), PayPal (PYPL ) and PepsiCo (PEP ).
Morgan Stanley (MS ) predict that Disney could see big gains ahead, with the firm reiterating it Overweight rating on the entertainment company's stock ahead of its earnings announcement on Wednesday. Analyst Benjamin Swinburne's bull case price target for Disney of $150 implies a 36.1% upside from Friday's close.
