Stocks are edging lower on Wall Street in afternoon trading on Monday ahead of the latest round of corporate earnings reports and a busy week of inflation updates.
The S&P 500 fell 0.2 per cent in mid-afternoon trade, the Dow Jones shed 0.1 per cent and the Nasdaq lost 0.6 per cent. US bond trading was closed. The Australian sharemarket is set to rise, with futures at 5.04am AEDT pointing to a rise of 24 points, or 0.4 per cent, at the open. On Monday, the ASX made a dismal start to the week with a 1.4 per cent loss.
Wall Street has edged lower to start the week.Credit:AP
Major Wall Street indexes are coming off a volatile week where they notched out gains because of an early two-day rally that shielded stocks from several weak days.
Technology stocks were the biggest weights on the market. Makers of semiconductors and chip manufacturing equipment also suffered heavy selling after the US government tightened export controls to limit China’s ability to get advanced computing chips, develop and maintain supercomputers, and make advanced semiconductors. Nvidia fell 2.5 per cent.
Industrial companies and others considered less risky, such as household goods makers, held up better than the rest of the market.
Wall Street has been turbulent amid worries about stubbornly hot inflation and the Federal Reserve’s plan to tame high prices by raising interest rates. The goal is to slow economic growth and cool both borrowing and spending in order to get inflation under control, but the plan risks sending the economy into a recession.
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Investors will potentially get a more detailed picture of the Fed’s thinking on Wednesday when the central bank releases minutes from its latest policy meeting. That’s when the Fed made another extra-big interest rate increase of three-quarters of a percentage point.
“Nobody’s arguing about whether inflation is falling, it’s simply the slope of the slide,” said David Kelly, chief global strategist at JPMorgan Funds. “The inflation battle is being won and the problem is the recession battle may be getting lost unnecessarily.”
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