NEW YORK (AP) — Stocks are opening lower on Wall Street after falls in foreign markets, continuing a losing streak for U.S. markets that has sent the benchmark S&P 500 index down for three straight weeks. Energy companies took the biggest losses early Monday as crude prices fell more than 5%. Banks, industrial companies and big tech also fell. The S&P 500 was down 0.7%. Prices of ultra-safe US government bonds rose as traders moved away from risk. The Shanghai stock index sank 5.1% as China tightened its strict pandemic policies as the number of cases rose.
THIS IS A LAST MINUTE UPDATE. The previous AP story follows below.
NEW YORK (AP) — Wall Street pointed to a lower open on Monday after European and Asian markets fell sharply as worries about interest rate hikes dominated a host of investor concerns.
Dow Industrial futures fell 0.7%, while the S&P 500 fell 0.8%.
Shares on Twitter jumped nearly 5% premarket after multiple media outlets reported that the company’s board and Tesla CEO Elon Musk negotiated their offer to buy the networking platform until early Monday morning. social. Musk said last week that he had raised $46.5 billion in financing to buy Twitter, pressing the company’s board to broker a deal.
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The Shanghai Composite Index sank 5.1% and Hong Kong fell 3.7%, as China tightened its strict pandemic policies while the number of cases rose.
the news that Emmanuel Macron won the second round of the French presidential election over the weekend, securing a second term as widely expected, he assured markets that France will not abruptly change course amid the war in Ukraine.
But the significant spectacle of contender Marine Le Pen, a populist and nationalist, served as a reminder of how fragile that situation could be, analysts said. Le Pen vowed to dilute France’s ties with the EU, NATO and Germany, and spoke out against EU sanctions on Russian energy supplies.
France’s CAC 40 fell 2% in midday trading. Germany’s DAX lost 1.3% and Britain’s FTSE 100 lost 2%.
In Asian trade, Japan’s benchmark Nikkei 225 index lost 1.9% to finish at 26,590.78. South Korea’s Kospi fell 1.8% to 2,657.13. Hong Kong’s Hang Seng fell 770 points to 19,869.34, while the Shanghai Composite lost 158 points to 2,928.51, falling below 3,000 for the first time since July 2020.
Hong Kong-traded shares of internet firm Baidu fell 7%, while PetroChina lost 4% on falling oil prices.
“After the strong sell-off on Wall Street that ended last week, the overall risk appetite in the region may also come under pressure,” said Yeap Jun Rong, market strategist at IG in Singapore.
The increase in COVID-19 cases in China is skyrocketing concerns about more pandemic blockades that would hamper economic recovery in the region. Beijing imposed lockdowns in several districts after the number of cases rose.
Investors are also keeping an eye on earnings reports and forecasts from companies, some of which have been disappointing, such as Netflix and Verizon, and contributed to Wall Street’s decline last week.
What the US Federal Reserve might do is a priority for investors. The Chairman of the Federal Reserve has indicated the central bank may raise short-term interest rates to double the usual rate at upcoming meetings, starting in two weeks. The Fed has already raised its key overnight rate once, the first such increase since 2018.
Markets around the world are feeling similar pressure on rates and inflation, particularly in Europe, as the war in Ukraine drives up oil, gas and food costs.
In energy trading, benchmark US crude lost $4.92 to $97.15 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell $4.86 to $101.29 a barrel.
In currency trading, the US dollar fell to 128.24 Japanese yen from 128.59 yen. The euro cost $1.0751, down from $1.0803.
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