Wall Street slips as concerns grow over tougher COVID restrictions in China

Wall Street slips as concerns grow over tougher COVID restrictions in China

  • Dow down 0.13%, S&P 500 down 0.39%, Nasdaq down 1.09%
  • Disney jumps on Iger’s return as CEO
  • Grindr falls after exploding in its early days
  • Tesla down on vehicle recall, China COVID concerns

Nov 21 (Reuters) – Wall Street’s main indexes ended roughly lower on Monday on fears that China could resume tougher measures to fight COVID-19 after saying it was facing its toughest test of the pandemic.

Beijing announced on Monday that it would close businesses and schools in hard-hit neighborhoods and tighten rules for entering the city as infections surged.

“There is this fear that China will reinstate some of the COVID restrictions that it has just started to lift,” said Carol Schleif, deputy chief investment officer at BMO Family Office.

US casino operators with operations in China, including Wynn Resorts Ltd (WYNN.O), Las Vegas Sands Corp (LVS.N), MGM Resorts International (MGM.N) and Melco Resorts & Entertainment Ltd all fell by at least 2%.

The Dow Jones Industrial Average (.DJI) fell 45.41 points, or 0.13%, to 33,700.28, the S&P 500 (.SPX) lost 15.4 points, or 0.39%, to 3,949.94 and the Nasdaq Composite (.IXIC) fell 121.55 points, or 1.09%, to 11,024.51.

Trading volume was low on Monday and is expected to decline around the Thanksgiving holiday on Thursday, leaving markets more prone to volatility.

Volume on U.S. exchanges was 9.43 billion shares, compared to an average of 11.88 billion for the full session over the past 20 trading days.

“If you want to blame profit-taking a bit on some concerns about spikes in COVID cases, that’s fine,” said Jack Janasiewicz, senior portfolio strategist and portfolio manager at Natixis Investment Managers Solutions. “It gets really tricky because of the volume.”

Stocks pared losses in the early afternoon after San Francisco Federal Reserve Chair Mary Daly said officials needed to be careful to avoid a “painful downturn.”

Cleveland Fed President Loretta Mester echoed Daly, saying she supported a lower rate hike in December.

The S&P 500 energy sector index (.SPNY) fell nearly 3% on Monday to its lowest level in four weeks, as oil prices fell more than 5% after a report that the Saudi Arabia and other OPEC oil producers were discussing an increase in production. The index, however, pared its losses after Saudi Arabia denied talking about it.

Energy was the only major sector in the S&P 500 to expect gains for the year, rising about 63%.

Walt Disney Co (DIS.N) jumped 6.30% after Bob Iger returned as chief executive of the entertainment giant.

The S&P 500 extended its slide from the previous week as several Federal Reserve officials reiterated the central bank’s commitment to raise rates until inflation is brought under control, as investors now wait the publication of the minutes of the Fed’s November meeting on Wednesday.

Traders are broadly betting on a 50 basis point hike at the December meeting, with rates expected to peak in June.

Among other stocks, Tesla Inc (TSLA.O) fell 6.84% after the electric car maker announced it would be recalling vehicles in the United States over an issue that may have caused the taillights to fail. to light up intermittently.

Gay dating app Grindr (GRND.N) fell 46.00% amid broader market weakness, after surging on its New York Stock Exchange debut in the previous session.

Falling issues outnumbered rising ones on the NYSE by a ratio of 1.27 to 1; on the Nasdaq, a 1.60-to-1 ratio favored decliners.

The S&P 500 posted 9 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 96 new highs and 220 new lows.

Reporting by Carolina Mandl, Ankika Biswas, Shubham Batra and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur, Shounak Dasgupta and Grant McCool

Our standards: The Thomson Reuters Trust Principles.

#Wall #Street #slips #concerns #grow #tougher #COVID #restrictions #China

Leave a Comment

Your email address will not be published. Required fields are marked *