US Stocks Lower After Global Political Risk

U.S. stocks were slightly lower on Monday, with major indexes retreating from record territory as investors grappled with a variety of geopolitical issues, both domestic and abroad.

This week will deliver testimony by fired Federal Bureau of Investigation Director James Comey, as well as the U.K. general election, and a European Central Bank meeting. Separately, the recent terror attack in the U.K. could amplify concerns, while a rift among Gulf states, which led to a rise in crude-oil prices, could further dictate investor sentiment.

The Dow Jones Industrial Average DJIA, +0.03% fell 18 points, or 0.1%, to 21,188. The S&P SPX, -0.01% lost 3.3 points to 2,436, a decline of 0.1%. The Nasdaq Composite Index COMP, +0.05% slipped 4 points, or 0.1%, to 6,301. All three indexes closed at records for a second straight session on Friday, as investors brushed aside a weaker-than-expected May jobs report.

The FTSE 100 index UKX, -0.17% and European stocks were weaker on Monday, after Saturday evening’s terror attack near London Bridge. Three assailants in a van mowed down pedestrians, then went on a knife rampage in Borough Market. At least seven people died and scores were injured, 21 critically.

“The market is in a wait-and-see mode. We’re trading near all-time highs, earnings season is pretty much over, and we’re waiting on clarity from central banks. Outside of the terrorism factor, which has been elevated, we’re still looking for the next bullish catalyst,” said Adam Sarhan, chief executive of 50 Park Investments. “However, the fact that we’re not down more after an attack like this is a sign of strength. So long as these kinds of attacks are fairly contained, they won’t change the economic picture.”

via MarketWatch

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