US Stocks Fall Monday 11/28 16:03
A broad slide on Wall Street left stocks lower Monday as global financial
markets reacted to protests in China calling for President Xi Jinping to step
down amid growing anger over severe COVID-19 restrictions.
(AP) -- A broad slide on Wall Street left stocks lower Monday as global
financial markets reacted to protests in China calling for President Xi Jinping
to step down amid growing anger over severe COVID-19 restrictions.
The S&P 500 fell 1.5%, clawing back all of the benchmark index's gains from
last week. The Dow Jones Industrial Average finished 1.4% lower, while the
Nasdaq composite slid 1.6%.
The world's second largest economy has been stifled by a "zero COVID" policy
which includes lockdowns that continually threaten the global supply chain at a
time when recession fears hang over economies worldwide. The recent
demonstrations there are the greatest show of public dissent against the ruling
Communist Party in decades.
The unrest stoked worries on Wall Street that if Xi cracks down even further
on dissidents there or expands the lockdowns, it could slow the Chinese
economy, which would hurt oil prices and global economic growth, said Sam
Stovall, chief investment strategist at CFRA.
"A lot of people are worried about what the fallout will be, and basically
are using that as an excuse to take some recent profits," he said.
More than 90% of the stocks in the S&P 500 closed in the red, with
technology companies the biggest weights on the broader market. Apple, which
has seen iPhone production hit hard by lockdowns in China, fell 2.6%.
Banks and industrial stocks also were among the biggest drags on the market.
JPMorgan fell 1.7% and Boeing slid 3.7%.
Several casino operators gained ground as the Chinese gambling haven of
Macao tentatively renewed the their licenses. Las Vegas Sands rose 1.1% and
Wynn Resorts gained 4.4%.
The fallout from the collapse of crypto exchange FTX continued.
Cryptocurrency lender BlockFi is filing for Chapter 11 bankruptcy protection.
Cryptocurrency exchange Coinbase Global fell 4% and the price of Bitcoin
All told, the S&P 500 fell 62.18 points to 3,963.94. The Dow dropped 497.57
points to 33,849.46. The tech-heavy Nasdaq lost 176.86 points to close at
Smaller company stocks fell even more that the broader market. The Russell
2000 slid 38.23 points, or 2.1%, to 1,830.96.
Markets in Asia and Europe fell. The yield on the 10-year Treasury held
steady at 3.69%.
Wall Street is coming off of a holiday-shortened week that was relatively
light on corporate news and economic data. Investors have a busier week ahead
as they continue monitoring the hottest inflation in decades and its impact on
consumers, business and monetary policy.
Anxiety remains high over the ability of the Federal Reserve to tame
inflation by raising interest rates without going too far and causing a
recession. The central bank's benchmark rate currently stands at 3.75% to 4%,
up from close to zero in March. It has warned it may have to ultimately raise
rates to previously unanticipated levels to rein in high prices on everything
from food to clothing.
Federal Reserve Chair Jerome Powell will speak at the Brookings Institution
about the outlook for the U.S. economy and the labor market on Wednesday.
The Conference Board will release its consumer confidence index for November
on Tuesday. That could shed more light on how consumers have been holding up
amid high prices and how they plan on spending through the holiday shopping
season and into 2023.
The government will release several reports about the labor market this week
that could give Wall Street more insight into one of the strongest sectors of
the economy. A report about job openings and labor turnover for October will be
released on Wednesday, followed by a weekly unemployment claims report on
Thursday. The closely-watched monthly report on the job market will be released