NEW YORK: Wall Street stocks fell early on Monday as markets weighed signs of easing in China’s Covid-19 restrictions against worries over Federal Reserve monetary policy.
Asian equity markets rose as officials in Beijing and throughout China began easing some pandemic restrictions. Commuters in the Chinese capital were no longer required to show a negative virus test taken within 48 hours to use public transport.
But US stocks pulled back early Monday ahead of key data releases later in the week, including a reading on producer prices – a gauge of inflation.
About 30 minutes into trading, the Dow Jones Industrial Average was down 0.9 percent at 34,110.27.
Wall St Week Ahead-Wall Street hunts for recession plays to weather potential 2023 turbulence
The broad-based S&P 500 shed 1.1 percent to 4,028.80, while the tech-rich Nasdaq Composite Index dropped 1.0 percent to 11,349.22.
US equities have risen most of the last month on anticipation of easing the country’s monetary policy.
“Right now the question on the market’s mind is: Is this the beginning of a new bull market… or a bear market bounce that will ultimately fail?” said Adam Sarhan of 50 Park Investments.
“And the jury’s still out.”
Comments
Comments are closed.