Stocks Falling in Comeback From Holiday

U.S. stocks are seeing pressure in early action following the long holiday weekend, with global recession concerns weighing on sentiment. The U.S. dollar is rallying to 20-year highs amid the uneasiness in the markets to exacerbate the situation, while Treasuries are gaining ground to apply some downside pressure on yields and flatten the curve. In equity news, Tesla reported softer-than-expected Q2 deliveries, though Exxon Mobil offered an upbeat earnings forecast for Q2. The economic calendar is set to deliver a read on factory orders after the opening bell. Crude oil prices are dipping, and gold is also trading lower. Asia finished mixed despite some upbeat Chinese economic data, and Europe is dropping broadly as the euro and British pound fall versus the U.S. dollar.

As of 9:00 a.m. ET, the September S&P 500 Index future is 50 points below fair value, the DJIA future is 426 points below fair value, and the Nasdaq Index future is 172 points south of fair value. WTI crude oil is decreasing $1.36 to $107.07 per barrel and Brent crude oil is declining $1.67 to $111.83 per barrel. The gold spot price is dipping $2.50 to $1,799.00 per ounce. Elsewhere, the Dollar Index is rallying 1.2% to 106.34.

Tesla Inc. (TSLA $682) reported that it delivered 254,695 vehicles in Q2, below the 256,520 FactSet estimate, with the disruption from the COVID-induced lockdowns in China having an impact.

Exxon Mobil Corporation (XOM $88) announced late-Friday that its Q2 earnings could reach $18.0 billion, a solid gain quarter-over-quarter, with the company benefitting from higher oil and natural gas prices, as well as increased refining margins.

The equity markets look set to remain choppy in the first full week of Q3, as they wrestle with an aggressive Fed, which has signaled that restoring price stability is its number one goal and conceding that the path to a soft landing has become "more challenging."

Amid this market backdrop, Schwab's Chief Investment Strategist, Liz Ann Sonders notes in her article, Panic Is Not a Strategy—Nor Is Greed, how disciplined investing helps investors navigate through volatile environments.