Stocks open lower on Wall Street, extending market losses | Health
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NEW YORK (AP) — Stocks opened lower on Wall Street after overseas markets fell, continuing a losing streak for U.S. markets that has dragged the benchmark S&P 500 index down for three straight weeks. Energy companies posted the biggest losses early Monday as crude oil prices fell more than 5%. Banks, industrials and big tech companies were also down. The S&P 500 fell 0.7%. Prices for ultra-safe US government bonds rose as traders feared the risk. Shanghai’s stock index fell 5.1% as China tightened its strict pandemic policies as the number of cases rose.
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NEW YORK (AP) — Wall Street pointed to a lower open on Monday after European and Asian markets fell sharply as worries about interest rate hikes dominated a range of investor concerns.
Dow Jones Industrials futures fell 0.7%, while the same for the S&P 500 fell 0.8%.
Shares on Twitter jumped nearly 5% pre-market after multiple outlets reported that the company’s board and Tesla CEO Elon Musk negotiated in the early hours of Monday on its offer. social media platform shopping cart. Musk said last week he had secured $46.5 billion in funding to buy Twitter, pressuring the company’s board to broker a deal.
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Shanghai’s composite index fell 5.1% and Hong Kong 3.7% as China tightened its strict pandemic policies as the number of cases rose.
The news that Emmanuel Macron wins the second round of the French presidential election over the weekend, landing a second term as widely expected, reassured markets that France will not abruptly change course amid the war in Ukraine.
But the significant spectacle of populist and nationalist candidate Marine Le Pen served as a reminder of just how fragile that situation could be, analysts said. Le Pen pledged to dilute French ties with the EU, NATO and Germany, and spoke out against EU sanctions on Russian energy supplies.
The French CAC 40 fell 2% at noon. Germany’s DAX lost 1.3% and Britain’s FTSE 100 lost 2%.
In Asian trading, Japan’s benchmark Nikkei 225 lost 1.9% to end at 26,590.78. The South Korean Kospi slipped 1.8% to 2,657.13. Hong Kong’s Hang Seng lost 770 points to 19,869.34, while the Shanghai Composite lost 158 points to 2,928.51, dipping below 3,000 for the first time since July 2020.
Hong Kong-traded shares in internet company Baidu fell 7%, while PetroChina lost 4% on falling oil prices.
“After the sell-off on Wall Street ended last week, overall risk appetite in the region may also be under pressure,” said Yeap Jun Rong, market strategist at IG in Singapore.
Rise in China’s COVID-19 cases kicks off worries about a new pandemic lockdowns that would jeopardize economic recovery in the region. Beijing imposed lockdowns in several districts after the number of cases spiked.
Investors are also watching earnings reports and forecasts from companies, some of which have been disappointing — like Netflix and Verizon — and contributed to Wall Street’s decline last week.
Investors are concerned about what the US Federal Reserve might do. the Chairman of the Federal Reserve said the central bank could raise short-term interest rates to double the usual amount in upcoming meetings, starting in two weeks. The Fed has already raised its overnight rate once, the first such hike since 2018.
Markets around the world are feeling similar pressure on rates and inflation, especially in Europe as the war in Ukraine drives up oil, gas and food prices.
In energy trading, benchmark U.S. crude fell $4.92 to $97.15 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell $4.86 to $101.29 a barrel.
In currency trading, the US dollar fell slightly to 128.24 Japanese yen from 128.59 yen. The euro traded at $1.0751, down from $1.0803.
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