By Yasin Ebrahim

Investing.com — The S&P 500 flitted between gains and losses Monday as gains in energy offset a Tesla-led slump in consumer discretionary stocks.

The gained 0.2% or 184 points while the decreased 0.43%.

Oil has recovered some of its earlier losses, citing fears about a shortage. Energy prices have risen more than 3% since then. European countries are making good progress towards an agreement that would ban Russian oil.

APA (NASDAQ) Marathon Oil (NYSE 🙂 and Occidental Petroleum Corporation (NYSE 🙂 were some of the top gainers. The latter was up over 6%.

The broader market was also affected by financials. Signature Bank (NASDAQ:), as the cryptocurrency-exposed bank reported a fall in deposits following a rout in crypto markets.

Regional banks suffered losses while the rest of the economy was under pressure. This is despite growing concerns about an economic slowdown after China’s weaker overnight economic growth. 

“Our conviction is that the chances of an outright recession in 2022 remain low,” Wells Fargo said in a note. “However, the probability has risen substantially that the economy could suffer a 2023 contraction.”

Markets were most affected by consumer discretionary stocks. This was reflected in a greater than 4% drop in Tesla (NASDAQ).

The big tech sector traded mixed with Alphabet (NASDAQ) and Amazon(NASDAQ:). While Facebook (NASDAQ) and Microsoft (NASDAQ) both rose more than 1%, Alphabet (NASDAQ) was in red.

Twitter (NYSE 🙂 lost over 7% in the meantime as investors seemed to price in Elon Musk’s potential lower $44billion offer to privatize the company or walking away.

Musk last week said that Twitter’s purchase was being held up due to fears about fake accounts.

The move was widely viewed as a gambit to negotiate a lower price, which if not accepted and results in Musk walking away, “then the stock would likely see a sub $30 level with a broken deal in this shaky market backdrop,” Wedbush said.

Concerns about the economy have been raised by concerns that regional manufacturing data could lead to a slowdown. In May, a New York reading on manufacturing activity fell to negative 11.6 from 36.2 in New York.

JetBlue Airways (NASDAQ 🙂 plunged 4% in other news after it offered a $30 share price Spirit Airlines After its earlier offer was turned down, (NYSE:

McDonald’s (NYSE:), meanwhile, fell 2% after announcing that it will sell its restaurants in Russia, leading to a $1.4 billion writeoff.   

Wall Street’s wild swings are expected to persist after a rebound last Wednesday.

“We expect a range-bound, choppy glide path for stocks in the week ahead- with support still near the 30-month MA on the SPX (3825), and resistance toward the 4300-4500 range,” Janney Montgomery Scott said in a note.