The S&P 500 hovered near the flat line on Tuesday as traders struggled to recover from the steep losses suffered in the previous session.
The Composite Index rose just 0.1% and the Nasdaq Composite rose 0.1%. The Dow Jones Industrial Average fell 19 points, or 0.1%.
The major averages plunged Monday, with the Dow down nearly 500 points. The S&P 500 and Nasdaq each fell more than 1% as protests against the country’s zero Covid policy began in mainland China over the weekend. This has raised concerns that China’s Covid protocol could once again disrupt global supply chains.
Trivariate Research’s Adam Parker said Monday on CNBC’s “Closing Bell: Overtime.”
“I think fears of an economic slowdown in China were probably an excuse for people to recoup the small gains they made in the quarter,” he added.
However, a Chinese official told reporters that 65.8% of people said,over 80 years old” was receiving a booster shot.Besides, the government reported a first drop in Covid infections 1 week or more to Mainland ChinaThis will contribute to the rise of the Hong Kong and Shanghai markets.
On the data side, the latest numbers on consumer confidence are due out at 10am, with data on topics like gross domestic product and employment expected later in the week.
Fed Chairman Jerome Powell is scheduled to speak at the Hutchins Center for Fiscal and Monetary Policy in Brookings on Wednesday. Investors will listen for clues as to whether the central bank will slow or stop rate hikes.