China’s third interest rate cut since last November did little to boost stocks in the U.S. as investors took profits on light trading volume following last Friday’s rally.
The Dow Jones Industrial Average and the S&P 500 both lost 0.5 percent to 18,105 and 2,105, respectively. The Nasdaq, which spent most of the day in the green, finished down 0.2 percent to 4,993. Retail, fashion and beauty shares closed the day mixed. For full closing stock price results, see the WWD Global Stock Tracker here.
The day’s light volume was influenced by a strong pullback in the energy sector, which was weighed down by slumping oil prices. Financial uncertainty in Greece also played into investment algorithms. Regarding China’s interest rate cut, investors seemed to think it would not be enough to boost the economy. A byproduct of the softening economy has been an increase in labor disputes in China.