|
At
6:21 a.m. ET, Dow e-minis were down 225 points, or 0.76%, S&P
500 e-minis were down 27.75 points, or 0.75%, and Nasdaq 100
e-minis were down 54 points, or 0.47%.
The Fed's latest signal that high interest rates could last
through 2023, sent the three major U.S. stock indexes tumbling
between 4% and 5% last week, with the Dow Jones Index coming
within spitting distance of a bear market on Friday.
In premarket trading on Monday, cyclical stocks traded sharply
lower on worries that such sharp rate hikes could rattle the
economy.
Boeing Co, Chevron Corp, Caterpillar Inc and JPMorgan Chase & Co
fell more than 1% each, while growth stocks including Apple Inc,
Microsoft Corp, Amazon.com Inc and Tesla Inc shed between 0.4%
and 0.5%.
The benchmark S&P 500 index on Friday briefly dipped below its
mid-June closing low of 3,666, erasing a sharp summer rebound in
U.S. stocks before paring losses and closing above that level.
"As the SPX tests its June lows, the question becomes is that
alone good enough reason to buy?" said Jonathan Krinsky, chief
market technician at BTIG.
"Given the acceleration higher in the dollar, global yields, and
the breakdowns across global FX, it's hard to not have concerns
about longer-term implications."
Sentiment across global markets was bleak after the sterling
briefly touched all-time lows earlier in the session on worries
that the new British government's fiscal plan threatened to
stretch the country's finances to their limits. [MKTS/GLOB]
In a bright spot, shares of casino operators Wynn Resorts, Las
Vegas Sands Corp and Melco Resorts & Entertainment jumped
between 5.5% and 9.6% after Macau planned to open to mainland
Chinese tour groups in November for the first time in almost
three years.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Anil
D'Silva)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
