The Dow Jones Industrial Average eked out a small gain on Monday after news that the special counsel found no collusion with Russia on the part of President Donald Trump. However, gains in the broader market were capped as worries over the global economy lingered.
The 30-stock Dow closed 14.51 points higher at 25,516.83 as Boeing outperformed. The S&P 500 declined 0.1 percent to 2,798.36, led lower by the financials and tech sectors. The index also closed below 2,800 for the first time since March 12. The Nasdaq Composite also pulled back 0.1 percent to 7,637.54.
Worries over the global economic outlook were stoked on Friday and lingered through Monday after the so-called yield curve inverted for the first time in more than a decade. The 3-month Treasury bill yield topped its 10-year counterpart on Friday, thus inverting the yield curve. Investors consider this to be a signal that a recession may be coming soon. Disappointing economic data released Friday out of Europe, coupled with a downgraded economic outlook from the Federal Reserve, added to those concerns.
The yield curve inverted again on Monday as the benchmark 10-year yield hit its lowest level since December 2017.
"Economies in Europe and China continue to deteriorate causing uneasiness that the problems overseas could affect the U. S. markets," Bruce Bittles, chief investment strategist at Baird, wrote in a note. "There are signs that our economy is not as robust as last year such as the decline in capital spending in the third and fourth quarters of last year."
Equities alternated between gains and losses for most of Monday as investors also digested comments from Attorney General William Barr. On Sunday, he said special counsel Robert Mueller's long-awaited investigation did not find enough evidence that Trump 's 2016 campaign colluded with Russia.
In a letter to top lawmakers, Barr wrote:
"The Special Counsel's investigation did not find that the Trump campaign or anyone associated with it conspired or coordinated with Russia in its efforts to influence the 2016 U.S. presidential election."