Stock prices fell on the New York Stock Exchange on Monday after financial markets around the world reacted to protests in China calling for the resignation of President Xi Jinping, amid growing anger over severe restrictions implemented by COVID-19.
The S&P 500 fell 1.5%, reversing all the gains the index made last week. The Dow Jones Industrial Average fell 1.4%, while the Nasdaq Composite lost 1.6%.
The world’s second-largest economy has been suffocated by a “zero COVID” policy that includes lockdowns that continually threaten the global supply chain at a time when fears of recession hang over economies around the world. The recent demonstrations are the largest display of public dissent against the Communist Party in decades.
The unrest has fueled concern on Wall Street that if Xi further cracks down on dissidents or expands virus lockdowns, he could slow China’s economy, hurting oil prices and global economic growth, Sam Stovall said. CFRA Chief Investment Strategist.
“A lot of people are worried about the consequences of the crisis and basically using it as an excuse to take some recent gains,” he explained.
More than 90% of S&P 500 stocks closed in the red, with tech companies losing the most in the overall market. Apple, whose iPhone production has been hit hard by lockdowns in China, fell 2.6%.
Banks and industrial stocks were also among the biggest losers in the market. JPMorgan fell 1.7% and Boeing 3.7%.
The S&P 500 was down 62.18 points to settle at 3,963.94. The Dow gave up 497.57 units to end at 33,849.46. The Nasdaq lost 176.86 integers to close at 11,049.50.
Small company stocks fell more than the rest of the market. The Russell 2000 lost 38.23 points, or 2.1%, to settle at 1,830.96.
The Asian and European markets fell. The 10-year Treasury yield held steady at 3.69%.
Wall Street is coming off a short week for the Thanksgiving holiday that was relatively light on corporate news and economic data. Investors have another busy week ahead as they continue to watch inflation and its impact on consumers, businesses and monetary policy.
Elaine Kurtenbach and Matt Ott contributed to this report.
Source: El Nuevo Herald