Stock market today: The Dow is heading lower as inflation fears weigh and China falters
The stock market fell on Tuesday as investors worried about issues including inflation and pressure on quarterly earnings, while Chinese stocks fell amid a report on President Xi Jinping’s plan to reform the country’s financial system.
futures contracts for
He pointed out that 130 points opened on a low after the index fell 250 points on Monday to close at 34496
She was poised for a similar start on Tuesday. After bond markets closed on Monday, the yield on the benchmark 10-year Treasury fell slightly on Tuesday, but remained above recent levels of 1.6%.
Concerns center around familiar topics, including inflation, supply chain stresses, and the future of central bank stimulus, such as the Federal Reserve starting to slow or scale back its monthly asset purchase program, expected in November.
The next major catalyst for the markets is expected to be the upcoming earnings season, which begins in earnest when major US banks announce their results later this week. Investors will closely monitor banks’ outlook for 2022, and outside of the financial services sector, how rising costs and supply chain issues could affect corporate earnings.
“Quarterly earnings season, which begins this week, is worrying stock markets about whether earnings expectations will soften for 2022 given the rich valuations prevalent in stocks everywhere,” said Jeffrey Haley, analyst at broker Oanda. “Add to the creeping, but relentless, fallout from the Fed’s tapering, and it is no surprise that stock markets remain on the alert.”
However, concern about earnings could leave room for strong bullish sentiment to return if the company’s earnings beat analyst estimates.
“Expectations for third-quarter earnings have fallen in recent weeks, and this should create scope for upside surprises, which is good for overall market sentiment,” said Rod von Lipsey, managing director at UBS Private Wealth Management.
The latest fuel for inflation fears was higher commodity prices, with US crude – WTI futures – closing at a seven-year high above $80 a barrel on Monday. West Texas Intermediate crude fell slightly on Tuesday, but settled at $80.40, while futures for the international benchmark Brent rose slightly to around $83.70.
Another round of commodity price hikes [is] Which makes it difficult for central banks to argue that inflation is in fact proving to be temporary,” said Jim Reed, strategist at Deutsche Bank.
Overseas, Hong Kong
It fell 1.7%.
Chinese stocks came under pressure after a report from The Wall Street Journal Focus on Xi’s plans to reform the country’s financial system. The report said Xi wants the ruling party to do more to direct money flows, set stricter rules for entrepreneurs and investors and their ability to make profits, and exercise more control over the economy.
Emotions in Hong Kong also subsided due to the update in the saga
(3333.HK), the indebted real estate developer whose financial problems are hanging like a black cloud over the country’s real estate sector.
“There were signs that Evergrande’s debt situation was deteriorating, with the company missing coupon payments on a 9.5% bond due in 2022 and a 10% bond due in 2023,” Reid said.
It was 0.7% lower.
The next day, markets will digest US economic data in the form of JOLTs for August and the NFIB Small Business Optimism Index for September.
Here are five stocks on the move on Tuesday
Broad market concerns and a Journal report reversed the upward trend in
(BABA), which as of Monday is up about 25% over the past five days. Shares of the internet giant fell 4.4% in Hong Kong. peer
(0700.HK) down 2.9% in Hong Kong, with other technology companies including
(BIDU) decreased by 4% and
(JD) is down 2.5%.
Shares in a low-cost airline
(EZJ.UK) It fell 2.6% in London, after the airline expected a loss of 1.2 billion pounds ($1.6 billion) this year.
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