Key Wall Street indices fell on Monday as data from China, which is worried about the global economic downturn, downbeat amid a backdrop of the US Federal Reserve’s aggressive policy.
Chinese and European stock markets fell in April after data showed that China’s economic activity had cooled sharply due to the Covid-19 lockdown, which had a profound effect on consumption, industrial production and employment.
Of the 11 major S&P sectors, seven declined. Technology and consumer discretionary stocks fell 0.8% and 1.7%, respectively.
Big companies like Amazon.com, Alphabet Inc, Microsoft Corp, Apple Inc, Tesla Inc and Nvidia Corp fell between 0.6% and 3.9%.
Energy stocks surpassed and rose 2.3%, followed by gains in defense sectors such as consumer staples, utilities and healthcare.
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Wall Street closed sharply on Friday, but the S&P 500 and Nasdaq (.IXindexes) still posted their longest weekly losing streak in more than a decade.
“(China data) The market had an overhang this morning, but it is trying to find its footing in the energy-led market. You can see that people are still hovering among the winners of the year, which is energy and utility,” said Jay Hatfield, chief executive of Infrastructure Capital Management in New York. Officer.
“We feel that many sectors in the market have been devalued.”
Investors are worried that the Fed’s aggressive interest rate hikes in the face of decades of high inflation could push the US economy into recession, exacerbating the conflict in Ukraine, supply chain snarls and an epidemic-related lockdown in China.
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The S&P 500 and tech-heavy Nasdaq are down 15.8% and 25%, respectively, so far this year, growth stocks have hit concerns that large rate hikes could hurt their future cash flow.
Traders are now setting prices at about 86% chance of a 50-basis-point increase by the Fed in June.
At 11:45 am ET, the Dow Jones Industrial Average fell 9.59 points, or 0.03%, to 32,187.07, the S&P 500 fell 11.80 points, or 0.29%, to 4,012.09, and the Nasdaqs fell 610,508 points. %, At 11,704.36.
The focus is on Tuesday’s retail sales report following last week’s worrying inflation and consumer sentiment data.
Retailers such as Walmart Inc., Home Depot and Target Corp. due to report their quarterly results this week.
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The numbers are declining for the 1.03-to-1 ratio on the NYSE and the 1.07-to-1 ratio on the Nasdaq.
The S&P index hit a new 52-week high and 31 new lows, while Nasdaq recorded 13 new highs and 108 new lows.