Shares declined in afternoon trading wall Street spread as a protest on Monday China President Xi Jinping called on to step down amid growing anger over Gambhir COVID-19 Sanctions.
The world’s second-largest economy has been buttressed by a “zero COVID” policy that includes lockdowns that continue to threaten global supply chains at a time when fears of recession loom over economies around the world. The recent turmoil in China is the biggest show of public discontent against the ruling Communist Party in decades.
The S&P 500 fell 0.9 percent as of 12:08 p.m. ET. The Dow Jones Industrial Average fell 260 points, or 0.8 percent, to 34,068, and the Nasdaq fell 0.8 percent.
Markets in Asia and Europe fell. Bond yields remained relatively stable. The yield on the 10-year Treasury rose to 3.70% from 3.69% on Friday.
Technology companies were the biggest weights on the broad market. Apple, which has seen iPhone production in China hit hard by lockdowns, fell 2.1 percent.
S&P/TSX composite down in morning trade, US stocks also fall
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Several casino operators temporarily renewed their licenses as the Chinese gambling haven of Macao. Las Vegas Sands rose 0.7 percent and Wynn Resorts climbed 3.2 percent.
The fallout of crypto exchange FTX continued to fall. Cryptocurrency lender BlockFi is filing for Chapter 11 bankruptcy protection. Cryptocurrency exchange Coinbase Global is down 3.5% and the bitcoin price is down 1.1%.
Wall Street is ending a holiday-shortened week that was relatively light on corporate news and economic data. A busy week lies ahead for investors as they continue to monitor the hottest inflation in decades and its impact on consumers, business and monetary policy.
Concerns remain over the Federal Reserve’s ability to reduce inflation without raising interest rates too far and causing a recession. The central bank’s benchmark rate currently stands at 3.75 per cent, up from four per cent, which was close to zero in March. It has warned that it may eventually have to raise rates to previously unprecedented levels to rein in high prices on everything from food to clothing.
Federal Reserve Chairman Jerome Powell will speak at the Brookings Institution on Wednesday about the outlook for the US economy and the labor market.
The Conference Board will release its Consumer Confidence Index for November on Tuesday. It could shed more light on how consumers are holding up amid higher prices and how they plan to spend 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 on 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 on Friday.
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