US Stock Market: DJIA, S&P500 and Nasdaq turns red in early trade on Monday
- The Nasdaq Composite fell 49.24 points or 0.38% to 12,997.95
- US crude oil price fell 4.9% amid concerns about the global economy
- Financial stocks also declined sharply
Stocks fell sharply in early trading on Wall Street Monday as investors kept their focus on the economy and watch for several updates from retailers this week.
The S&P 500 fell points or 0.30% as of 10:22 a, Eastern time. The Dow Jones Industrial Average fell 33.70 points or 0.1% to 33,727.35. The Nasdaq Composite fell 49.24 points or 0.38% to 12,997.95.
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US crude oil price fell 4.9% amid concerns about the global economy and weighed heavily on energy stocks. Exxon Mobil slipped 3.8%.
China’s central bank slashed its key interest rate after admitting more needs to be done to support the world’s second-largest economy. It is a warning sign for markets that are already on edge over record-high inflation and worries about recessions in the US and elsewhere.
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Treasury yields declined as a measure of manufacturing in New York state contracted sharply. The yield on the 10-year Treasury, which banks use to set mortgage rates, slipped to 2.77% from 2.83% late Friday.
Financial stocks also declined sharply. Bank of America fell 1.2%. Moderna surged 4% after British regulators approved an updated version of its COVID-19 vaccine.
The broader market has surged for four straight weeks on hopes that inflation is soaring and the Federal Reserve could ease up on its aggressive interest rate hikes. The central bank has been increasing short-term interest rates to help slow down the economy.
Investors are concerned that the central bank could raise the interest rates too high or too quickly and send the economy into a recession, and any signal that inflation could be peaking or retreating has helped some of those worries.
They are closely watching how inflation is affecting businesses and consumers. Spending has reduced and the broader economy has already contracted for two straight quarters. Several big retailers will release their quarterly results this week and give investors more details on how some businesses are holding up.
Walmart and Home Depot will release their reports on Tuesday and Target will announce results on Wednesday. The Commerce Department will release its July retail sales report on Wednesday.