Wall Street extended its recent losing streak on Monday, as equities slumped ahead of a busy week of inflation reports and the beginning of corporate earnings season.
The S&P 500 dropped 0.7%, continuing its losing skid to four days. The Dow Jones Industrial Average declined 0.3% after bouncing back and forth between tiny gains and losses, while the Nasdaq Composite plummeted 1%. In the last four trading days, the Dow and Nasdaq have also closed lower.
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Small-cap stocks also declined, sending the Russell 2000 index down by 0.6%. Bond trading in the United States was halted.
The benchmark index is coming off a turbulent week in which it gained ground owing to an early two-day surge that protected equities from many weak days.
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Wall Street has been turbulent amid worries about stubbornly hot inflation and the Federal Reserve’s plan to tame high prices by raising interest rates. The goal is to slow economic growth and cool both borrowing and spending in order to get inflation under control, but the plan risks sending the economy into a recession.
Investors will potentially get a more detailed picture of the Fed’s thinking on Wednesday when the central bank releases minutes from its latest policy meeting. That’s when the Fed made another extra-big interest rate increase of three-quarters of a percentage point.
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The government on Wednesday will release its report on producer prices, which will provide details for inflation on the wholesale level for businesses. The closely watched report on consumer prices will be released on Thursday and a report on retail sales will be released on Friday.
The S&P 500 fell 27.27 points to 3,612.39. The Dow dropped 93.91 points to close at 29,202.88. The Nasdaq lost 110.30 points to 10,542.10. The Russell 2000 fell 10.23 points to 1,691.92.
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Technology stocks were the biggest weights on the market. Makers of semiconductors and chip manufacturing equipment also suffered heavy selling after the U.S. government tightened export controls to limit China’s ability to get advanced computing chips, develop and maintain supercomputers, and make advanced semiconductors. Nvidia fell 3.4%.
Energy stocks fell as the price of U.S. crude oil dropped 1.6%. Occidental Petroleum slid 5.6%. Healthcare stocks also helped pull the S&P 500 lower. Pfizer lost 1.4%.
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Industrial companies and others considered less risky, such as household goods makers, held up better than the rest of the market.
PepsiCo, Delta Air Lines and Walgreens are among the big companies reporting earnings this week. Several major banks will report their results on Friday, including JPMorgan Chase and Citigroup.
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Casino and resort operators with operations in China slumped over worries about the impact of more lockdowns. Wynn Resorts fell 12.2% the biggest decline among S&P 500 companies and Las Vegas Sands slid 7.6%.