US stocks extend losses as technology and energy stocks underperform
By midday, the S&P 500 was down 1.2% at 4,435 points, while the Dow Jones lost 0.5% at 34,359 and the Nasdaq suffered heavy bleeding, down 1.8% at 13 462 dots.
12:05 p.m .: Wall Street sees heavy bleeding
Wall Street extended losses to midday on Monday as technology, energy stocks underperformed and Treasury yields continued to soar ahead of a busy week that includes data on inflation and the start of earnings season.
By midday, the S&P 500 was down 1.2% at 4,435 points, while the Dow Jones lost 0.5% at 34,359. The Nasdaq was bleeding heavily, down 1.8% at 13,462 points after falling almost 4% last week for its worst performance since late January.
The busy few days ahead are making investors nervous, says Chris Beauchamp, chief market analyst at online trading platform IG.
“The week-long outlook of inflation data and central bank decisions, complemented by the start of the earnings season in the United States, led to a largely risk-averse day for global markets,” said Beauchamp.
“Beleaguered global markets are hoping earnings from Thursday will provide better news to support stocks, as at present investors again appear to be retreating from risk in the absence of more encouraging headlines.”
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9:47 am: US stocks start the week in the red
US stocks started the new week in the red, as expected, as investors fret over geopolitical events and inflation and interest rates continue to head north.
The Dow Jones Industrial Average fell 108 points to 34,612.
The S&P 500 fell nearly 33 points to 4,455.
The tech-laden Nasdaq exchange was down 193 points to 13,519.
It comes as US Treasury yields (the amount the government spends on borrowing) hit a new three-year high
On Sunday evening, the 10-year note hit 2.7741%, its highest in about three years.
On the data front this week, traders will be watching the Consumer Price Index inflation for March due out on Tuesday and the Producer Price Index on Wednesday.
6:30 a.m.: Soft start planned for Wall Street
US stocks are poised to open lower in what is expected to be a busy week with geopolitical and economic concerns as well as earnings data likely to dominate sentiment.
Russia’s invasion of Ukraine is well into its second month and a ceasefire still seems a distant prospect. In this context, investors fear a slowdown in economic growth accompanied by rising inflationary pressures.
Dow Jones Industrial Average futures were down 0.08% in premarket Monday trading, while those for the S&P 500 were down 0.36% and contracts for the Nasdaq-100, very technology, lost 0.79%.
“Geopolitical uncertainty is still on traders’ dashboards, and they will be watching for Austrian Chancellor Karl Nehammer, who will meet President Putin in Moscow today. Hope is again for more peaceful talks said Naeem Aslam, chief market analyst at avatrade.com.
There are also plenty of things for investors to consider as the US earnings season begins.
“Traders are likely to be on edge because we have US banks starting first quarter earnings,” Aslam said. “Traders would focus on two aspects when it comes to bank earnings; they would like to know what these Wall Street giants think of the Fed’s current monetary policy. A higher interest rate environment must add more value to their profit margins. These two important factors are likely to govern their price action this week.”
In March, the U.S. rate-setting body raised interest for the first time since 2018. Minutes of that meeting, released last week, signaled that increases of 50 basis points could be at hand. handy.
US inflation data for March is due Tuesday and will be closely watched.
“Inflation is already far too high. If the actual figure is even higher than expected, we are likely to see much higher volatility in the equity, currency and fixed income markets. Traders are very likely to ‘be spooked by high inflation because it will confirm that the Fed is more likely to raise the interest rate by 50 basis points rather than 25 basis points,’ Aslam said.
Elsewhere, Benchmark Brent crude futures were down 0.2% at $100.412, while WTI futures were also down 0.2% at $95.80.
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