Wall Street collapses after French market rises following election results

NEW YORK (AP) – U.S. stocks drift Monday after French market soars Elections continue to cause fluctuations in financial markets around the world.

The S&P 500 was up 0.1% in morning trading as it began a short four-day week that includes the July 4 holiday. The Dow Jones Industrial Average was up 187 points, or 0.5%, as of 10:10 a.m. Eastern time, and the Nasdaq Composite Index was virtually unchanged.

Some of the world's strongest action took place on the other side of the Atlantic, where the CAC 40 index in Paris jumped 2.8% before settling at a gain of 1, 8%. The results from France suggest that a Far-right political party may fail to secure decisive majority in the country's legislative elections. This could mean that France could avoid one of the worst scenarios for financial markets, where such a victory could lead to policies that would significantly increase the French government's debt and other challenges.

It's a big year for elections around the world, with voters heading to the UK polls later this week and soon elsewhere. In the United States, pollsters are measuring the fallout from last week's debate between President Joe Biden and former President Donald Trump. All of this underscores political polarization and how elections determine the economy, rather than the other way around, according to Nick Gentle and others in the product management group at Barclays.

Treasury yields rose in the U.S. bond market. The 10-year Treasury yield rose to 4.44% from 4.39% late Friday.

Yields have generally been trending lower since the 10-year Treasury yield rose above 4.70% in late April. They fell in hopes that inflation would slow enough to convince the Federal Reserve to reduce its main interest rate later this year, down from the highest level in more than two decades. High rates have been US economy slowdown by making it more expensive borrow for a housecar or something else.

Hopes for a rate cut strengthened after a report showed the U.S. the manufacturing sector has weakened Last month, price increases outpaced economists’ forecasts. Perhaps more important for Wall Street, the Institute for Supply Management’s report also showed that price increases were slowing, even as prices continued to rise. Taken together, these data could provide more evidence of the easing pressure on inflation that the Federal Reserve wants before cutting rates.

This week's high point for economic reports will likely come on Friday, when the U.S. government announces how many workers were hired in June. Economists forecast a slowdown in overall hiring to 190,000 from 272,000 in May. That would bring the number closer to what Bank of America calls the Goldilocks figure of about 150,000, to about 25,000.

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At this level, the U.S. economy could continue to grow and avoid a recession without being strong enough to put upward pressure on inflation.

On Wall Street, Chewy went from a big initial gain to a 4.1% loss after a Widely followed trader named Keith Gill revealed that he owns just over 9 million shares of the pet supplies company. That represents about 6.6% of the entire company, according to a filing Monday with the Securities and Exchange Commission.

Gill became famous during the the original meme stock craze of 2021 which saw GameStop rally heights that bend the market. Through him, Gill became the face of the fans pushing GameStop ever higher. Gill had returned to I'm talking about GameStop recently, which helped push its stock price higher. But it fell 5.5% on Monday after its Chewy reveal.

Elsewhere on Wall Street, Spirit AeroSystems rose 3.6% after Boeing announced it would buy the fuselage maker and other aircraft parts for $4.7 billion in stock and assumes about $3.6 billion of its debt.

Boeing, which grew 2.4%, faced difficulties government scrutiny and the airlines who buy its planes out of concern safety and qualityBoeing previously owned Spirit AeroSystems, and the purchase reverses the company's long-standing strategy of outsourcing key work on its passenger planes.

Meta platforms fell 1.8% after European Union regulators accused It's about breaking the new blocks digital competition rules by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them.

In foreign stock markets, Japan's Nikkei 225 added 0.1% after a quarterly survey The Bank of Japan's tankan showed a slight improvement in confidence among the country's largest manufacturers between April and June.

Shanghai shares rose 0.9% after mixed data on the world's second-largest economy.

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AP writers Matt Ott and Zimo Zhong contributed.