Jennifer Sor
Protesters shout slogans during a protest against Chinas strict zero COVID measures on November 28, 2022 in Beijing, China. Kevin Frayer/Getty Images Stocks sank on Monday as protestors in China and hawkish comments from Fed officials weighed on the market. Unrest over China’s zero-COVID policy could exacerbate supply-chain issues, which are partly responsible for rising inflation. St. Louis Fed President James Bullard added the US had “a ways to go” on rate hikes before claiming victory on the inflation front. Loading Something is loading.
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US stocks sank on Monday as protests in China and hawkish comments from Fed officials weighed on the market.
Anger over China’s zero-COVID policy has sparked turmoil across the nation, with protests threatening to exacerbate supply-chain issues in the global economy. Experts say the protests could fuel US inflation, as supply-chain issues have been a major driver of high prices so far.
Apple stock slipped nearly 3% as unrest broke out in a iPhone factory in Zhengzhou, and the tech giant will have to navigate the possibility of “brutal” shortages into the holiday season, Wedbush warned.
St. Louis Fed President James Bullard expressed more hawkishness on the Fed’s inflation fight, noting the central bank still had “a ways to go” before policy was restrictive enough to tame inflation. He estimated the Fed would raise rates to 5%-5.25%.
Here’s where US indexes stood as the market closed at 4:00 p.m. on Monday:
S&P 500: 3,963.95, down 1.54%Dow Jones Industrial Average: 33,849.46, down 1.45% (497.57 points)Nasdaq Composite: 11,049.50, down 1.58% Here’s what else is happening:
Apple has seen $96 billion erased from its market value as investors grow anxious over iPhone shortages, according to Wedbush.Chinese stocks are set to struggle against economic headwinds, and any recovery will be sluggish despite policy support from the government, UBS warned.BlockFi filed for bankruptcy, the latest crypto lender to succumb to the contagion of FTX’s collapse.Bitcoin could plunge to $10,000, and investing in crypto is “dangerous,” according to billionaire Mark Mobius.The Fed could slash rates by 200 basis points by mid-2024, according to Deutsche Bank.The Fed’s rate hikes could soon bleed into other areas of the economy and weigh on sectors like manufacturing, according to one Solus strategist.In commodities, bonds, and crypto:
Oil prices traded mixed, with West Texas Intermediate up 0.93% to $76.99 a barrel. Brent crude, the international benchmark, dropped 1.02% to $83.73 a barrel.Gold slipped 0.84% to $1,739.85 per ounce.The 10-year yield inched 1 basis point higher to 3.7%.Bitcoin dropped 1.93% to $16,234.42. Read next
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