US stocks down sharply as investors worried about slowing growth, inflation

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Oil prices in New York closed above $80 a barrel on Monday after trading above $81 a barrel for the first time in seven years.

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US Equity Futures Were down sharply early Tuesday as investors continued to worry about slowing growth and rising inflation, fueled by a rally in oil prices on Monday.

Stocks in this article

Me: DJI dow jones average
$34496.06
-250.19 (-0.72%)
SP500 S&P 500
$4361.19
-30.15 (-0.69%)
me: comp NASDAQ Composite Index
$14486.00385
-93.34 (-0.64%)

Oil prices in New York closed above $80 a barrel on Monday after trading above $81 a barrel for the first time in seven years.

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Oil, coal and natural gas prices are climbing, adding price pressure that could cause the Federal Reserve and other central banks to backtrack more quickly on their support for the markets.

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Shares of the technology company fell after the Wall Street Journal reported that the government was inspecting financial ties with private sector companies.

On Wall Street, stocks closed broadly lower on Monday, with the S&P 500 down 0.7% at 4,361.19. The Dow Jones Industrial Average also fell 0.7% to 34,496.06 and the Nasdaq fell 0.6% to 14,486.20. Most of the sectors remained in the red mark.

Technology and communications stocks were some of the biggest losers. Facebook fell 1.4% and Intuit 1.1%.

Bond trading was closed due to the Columbus Day holiday.

Investors are eagerly awaiting the company’s earnings debut this week.

Companies across a wide range of industries are warning that supply chain problems and high raw material costs could erode their financial results for the rest of the year. Wall Street is closely monitoring whether those higher costs and higher prices for commodities will hurt consumer spending, a key driver of economic growth.

Stocks are swinging between gains and losses as investors try to better understand the direction of economic recovery during the rest of the year.

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Banks will be among the first majors to report their latest financial results and give investors more insight into how companies are faring amid concerns over the lingering virus pandemic and rising inflation.

JPMorgan Chase announced the results on Wednesday. Bank of America, Wells Fargo and Citigroup will report results on Thursday.

Delta Air Lines will report its latest results on Wednesday. The airline industry is still struggling to recover from the pandemic shutdown that began 18 months ago. Investors will be closely monitoring the industry’s results to see how the summer surge of COVID-19 cases has had an impact on the industry.

Investors are also looking forward to economic data this week that could shed more light on what is happening with inflation. The Labor Department will release its Consumer Price Index on Wednesday and its Producer Price Index on Thursday. The report details inflationary pressures on consumers and businesses.

Energy demand has jumped faster than production as economies recover from the pandemic, driving higher prices. Other factors, including a shortage of truck drivers, shipping disruptions, flooding of coal mines in China and droughts affecting hydroelectric power generation, are also driving up prices.

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Edward Moya of Oanda said, “Energy crisis uncertainty will keep crude prices high unless the oil market is likely to move towards equilibrium. The natural gas shortage will not go away soon and this will lead to additional crude oil prices.” The demand will continue.” A Comment.

Meanwhile, stocks in Asia fell on Tuesday as rising oil, coal and other energy prices raised concerns over inflation.

Benchmarks declined in Tokyo, Hong Kong and Shanghai.

Tokyo’s Nikkei 225 index fell 0.9% to 28,230.61, while the S&P/ASX 200 slipped 0.3% to 7,280.70. In Seoul, the Kospi fell 1.4% to 2916.38. came on

In Hong Kong, the Hang Seng fell 1.7% to 24,908.11 and the Shanghai Composite Index fell 1.8% to 3,527.59.

Shares of e-commerce giant Alibaba Group fell 4.2%, while search engine company Baidu fell 4%. Tencent Holdings, which operates the popular WeChat messaging service, fell 2.9%.

Shares in India and Taiwan also declined, but were up in Jakarta and Bangkok.

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US benchmark crude oil rose 17 cents to $80.69 a barrel in electronic trading on the New York Mercantile Exchange. It rose 1.5% to $80.52 a barrel on Monday.

Brent crude, the international pricing standard, rose 25 cents to $83.90 a barrel.

The US dollar fell from 113.32 yen to 113.13 Japanese yen late on Monday. The euro rose from $1.1553 to $1.1565.

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AP Business Writer Damien J Trois contributed.


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