NEW YORK (AP) — Wall Street stocks are starting to fall sharply, extending the market’s losses. Last week’s losses snapped a four-week winning streak for the S&P 500. The benchmark index was down 1.4% early Monday, led by larger losses in technology majors. The tech-heavy Nasdaq was down a bit more, while the Dow Jones Industrial Average was also down. Signify Health rose after The Wall Street Journal reported that Amazon would bid for the company, while Cineworld and other major movie theater chains fell sharply after Cineworld said it was considering filing for Chapter 11 bankruptcy .
THIS IS BREAKING NEWS. Earlier AP history is below.
BEIJING (AP) — Global stocks and Wall Street futures fell on Monday as investors awaited signals at a Federal Reserve conference this week on possible new U.S. rate hikes to cool rising inflation.
London and Frankfurt opened lower. Tokyo and Hong Kong refused. Shanghai, the only major market to advance, rose after China’s central bank cut a rate that affects mortgage rates. Oil prices fell by more than $1.50 per barrel.
Investors are watching the Fed’s annual meeting in Jackson Hole, Wyoming, after last week’s July meeting of the U.S. central bank’s board confirmed plans to raise rates despite signs of slowing economic activity. Traders worry that aggressive moves to curb inflation, which has been at multi-decade highs, could derail global economic growth.
“The Fed is still experiencing inflation. His actions have not even begun to ease inflationary pressures,” Clifford Bennett of ACY Securities said in a report. “They haven’t even started curtailing economic activity at all. The economic slowdown was already in play for other reasons.”
In early trade, London’s FTSE 100 lost 0.7% to 7,494.91, while Frankfurt’s DAX fell 1.1% to 13,544.52. The Paris CAC 40 fell 1.6% to 6,389.86.
On Wall Street, benchmark S&P 500 futures fell 0.6%, while the Dow Jones Industrial Average fell 0.5%.
The S&P 500 lost 1.3% on Friday. It decreased by 1.2% for the week. This year, this indicator decreased by 11.3%.
The Dow fell 0.9% and the Nasdaq lost 2%.
In Asia, the Shanghai Composite rose 0.6% to 3,275.93 after the People’s Bank of China cut its lending rate, the target market interest rate, for a five-year loan to support weak home sales.
Tokyo’s Nikkei 225 index fell 0.5% to 28,794.50. Hong Kong’s Hang Seng was down 0.6% at 19,656.98.
South Korea’s Kospi was down 1.2% at 2,462.50, while Sydney’s S&P ASX-200 was down 1% at 7,046.90.
India’s Sensex opened down 1% at 59,017.57. New Zealand, Singapore and Bangkok advanced while Jakarta fell.
China’s central bank cut its five-year lending rate target by 0.15 percentage points to 4.3%. The one-year lending rate that affects other industries was cut by just 0.05 percentage points to 3.65%.
The ruling Communist Party is trying to revive economic growth after a debt crackdown caused property sales to fall and Shanghai and other industrial cities closed for weeks starting in late March to combat virus outbreaks.
The move “reflects the severity” of the property slump and shows Beijing is “ready to take tougher measures,” Invesco’s David Chao said in a report.
China’s leaders are trying to revive economic growth without using comprehensive stimulus that could push inflation or politically sensitive housing costs.
In the energy markets, benchmark US crude oil fell by $1.52 to $88.92 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the benchmark for international trade, fell $1.55 to $95.17 a barrel in London.
The dollar rose to 137.13 yen from 136.91 yen on Friday. The euro fell to $1.0016 from $1.0034.
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