US: Stocks are mixed on stimulus, virus outlook

[NEW YORK] US stocks were mixed on Monday, and commodities slumped as investors weighed concerns about a pull-back in stimulus and a resurgence in the fast-spreading delta virus variant.

The S&P 500 and Dow Jones Industrial indexes fell, while the Nasdaq 100 edged modestly higher. In Europe, the Stoxx 600 Index was little changed as gains in technology firms offset declines in energy shares and miners.

Crude oil touched the lowest in three weeks on concern the Delta virus strain will hamper demand growth.

Precious metals also sold off, with gold touching the lowest since March before paring losses. Silver dropped to its lowest since November.

Strong US payrolls data last Friday raised the prospect of higher rates, which would make precious metals less attractive relative to other assets.

Friday's payrolls report, as well as comments from Dallas Fed president Robert Kaplan, have fanned expectations that the Federal Reserve may soon start paring back its massive monetary stimulus.

Along with the rampaging delta variant that is hitting commodities as investors also keep an eye on rising price pressures, US inflation data later this week will be a key marker ahead of the Jackson Hole symposium later this month.

"You have these concerns that if the economy is growing very, very strongly then that might bring forward the tightening or the tapering by the Fed," Shane Oliver, head of investment strategy and chief economist at AMP Capital, said on Bloomberg Television. "There is a good chance they might announce that tapering in September and it would start later this year."

Elsewhere, Chinese technology shares remained under pressure amid concerns about Beijing's crackdown. Bitcoin rose to around US$45,000.

The S&P 500 was little changed at 9.31am New York time. The Nasdaq 100 rose 0.3 per cent. The Dow Jones Industrial Average fell 0.1 per cent. The Stoxx Europe 600 rose 0.1. The MSCI World index was little changed.

BLOOMBERG