Advertisement
Canada markets open in 4 hours 21 minutes
  • S&P/TSX

    21,837.18
    -12.02 (-0.06%)
     
  • S&P 500

    5,149.42
    +32.33 (+0.63%)
     
  • DOW

    38,790.43
    +75.63 (+0.20%)
     
  • CAD/USD

    0.7367
    -0.0022 (-0.30%)
     
  • CRUDE OIL

    82.81
    +0.09 (+0.11%)
     
  • Bitcoin CAD

    85,654.73
    -6,285.48 (-6.84%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,156.00
    -8.30 (-0.38%)
     
  • RUSSELL 2000

    2,024.74
    -14.58 (-0.72%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,222.75
    -8.75 (-0.05%)
     
  • VOLATILITY

    14.39
    +0.06 (+0.42%)
     
  • FTSE

    7,721.21
    -1.34 (-0.02%)
     
  • NIKKEI 225

    40,003.60
    +263.20 (+0.66%)
     
  • CAD/EUR

    0.6789
    -0.0003 (-0.04%)
     

Stock market news live updates: Stocks, oil slide to start week as COVID protests erupt across China

U.S. stocks tumbled Monday as unrest in China over the nation's restrictive COVID controls weighed on global sentiment and Wall Street returned from a holiday weekend.

The S&P 500 (^GSPC) sank 1.5%, while the Dow Jones Industrial Average (^DJI) posted roughly the same percentage loss, or nearly 500 points. The technology-heavy Nasdaq Composite (^IXIC) declined by 1.6%.

Investors assessed widespread protests across China's major cities that began during the weekend over the country's Zero-COVID policies. The U.S. dollar gained against other currencies as the yuan slumped. Oil plunged and hit 2022 lows, with West Texas Intermediate crude futures settling at around $77 per barrel.

ADVERTISEMENT

Shares of Apple (AAPL) sank 2.6% Monday on concerns that turmoil in China may pressure a key manufacturing plant in the country and further weigh on already constrained iPhone production. Bloomberg also reported tumult across the country may cause a production shortfall of about 6 million iPhone Pros this year.

Remarks from St. Louis Fed President James Bullard also dampened the mood on Wall Street Monday after he asserted the U.S. central bank has "a ways to go" on interest rates. Bullard said the federal funds rate needs to be lifted to at least a range between 5.00% and 5.25% to be "sufficiently restrictive" to tame inflation.

Cryptoworld was in focus following a report by Decrypt indicating digital asset lender BlockFi will file for bankruptcy and lay off staff as the contagion effects of FTX's collapse continue to permeate the space.

Investors face a barrage of economic data this week as they head into December. The government’s November jobs report, housing data, a second look at third-quarter GDP and PCE inflation are just some of the key releases on tap.

Monday's moves come after a week of modest gains for stocks that saw the S&P 500 rise 1.5%, the Dow 1.8%, and the Nasdaq Composite 0.7% over the three-and-a-half-day trading period curtailed by Thanksgiving.

Just 24 trading days remain in 2022. The Federal Reserve and officials’ path forward for interest rates continue to be the main focus for investors, with the U.S. central bank’s final hike of the year on deck after its next meeting Dec. 13-14.

A man holds white sheets of paper in protest over coronavirus disease (COVID-19) restrictions after a vigil for the victims of a fire in Urumqi, as outbreaks of COVID-19 continue, in Beijing, China, November 28, 2022. REUTERS/Thomas Peter
A man holds white sheets of paper in protest over coronavirus disease (COVID-19) restrictions after a vigil for the victims of a fire in Urumqi, as outbreaks of COVID-19 continue, in Beijing, China, November 28, 2022. REUTERS/Thomas Peter (Thomas Peter / reuters)

Minutes from the Fed’s gathering earlier this month – and a chorus of Fed officials in recent weeks – have suggested a downshift in the size of December’s rate increase is likely as policymakers look towards a “slower but higher” rate regime. Investors are largely expecting an increase of 0.50% to the bank’s overnight interest rate, a markdown from four consecutive 0.75% hikes.

While a deceleration and eventual pivot are highly awaited by equity investors, Wall Street strategists have warned that there is little to be excited about in the new year, even as inflation appears to slow and a pause on tightening nears.

Goldman Sachs analysts led by David Kostin said in their 2023 outlook that the S&P 500 is likely to end next year around flat, weighed down by the absence of earnings growth across companies.

“​​The performance of U.S. stocks in 2022 was all about a painful valuation de-rating, but the equity story for 2023 will be about the lack of corporate earnings growth,” the team at Goldman Sachs said. “Put simply, zero earnings growth will drive zero appreciation in the stock market.”

Meanwhile, Morgan Stanley warned in its own forecast that the S&P 500 will “tread water,” with material swings along the way, to end 2023 around 3,900.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Click here for the latest trending stock tickers of the Yahoo Finance platform

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube