US stocks fell sharply as investors worried about slowing growth and inflation

US stock futures It fell sharply early Tuesday as investors continued to worry about slowing growth and rising inflation, due to higher oil prices on Monday.

stock in this article

$34496.06

-250.19 (-0.72%)

14486.200385 dollars

-93.34 (-0.64%)

Oil prices rose, having closed above $80 a barrel in New York after trading briefly above $81 a barrel on Monday for the first time in seven years.

Oil, coal and natural gas costs have risen, adding to price pressures that could prompt the Federal Reserve and other central banks to back off more quickly from their support of the markets.

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Technology stocks fell after the Wall Street Journal reported that the government was inspecting financial ties with private sector firms.

On Wall Street, stocks closed broadly lower on Monday, with the S&P 500 down 0.7% to 4,361.19. The Dow Jones Industrial Average also fell 0.7% to 34496.06, and the Nasdaq fell 0.6% to 14486.20. Most sectors ended up in red.

US stock futures fell sharply early Tuesday as investors continued to worry about slowing growth and rising inflation, due to higher oil prices on Monday.

Technology and telecoms stocks saw some of the biggest losses. Facebook shares fell 1.4 percent, and Intuit fell 1.1 percent.

Bond trading is closed due to the Columbus Day holiday.

Investors are looking forward to the start of the company’s earnings this week.

Companies in a wide range of industries are warning that supply chain problems and rising raw material costs could hamper their financial results for the rest of the year. Wall Street is watching closely whether these higher costs and the resulting higher commodity prices will hurt consumer spending, a key driver of economic growth.

Stocks swing between gains and losses as investors try to better gauge the direction of the economic recovery over the rest of the year.

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Banks will be among the first major companies to announce their latest financial results and give investors more insight into how companies are doing amid fears of the virus pandemic and rising inflation.

JPMorgan Chase will present its results on Wednesday. Bank of America, Wells Fargo and Citigroup will report results on Thursday.

Delta Air Lines will announce its latest results on Wednesday. The airline industry is still struggling to recover from the pandemic lockdowns that began 18 months ago. Investors will closely monitor industry results to see how the summer wave of COVID-19 cases will affect the industry.

Investors are also looking forward to this week’s economic data that may shed more light on what’s going on with inflation. The Labor Department will release the Consumer Price Index on Wednesday and the Producer Price Index on Thursday. The reports detail the pressure caused by inflation on consumers and businesses.

Energy demand rebounded faster than output as economies recovered from the pandemic, driving up prices. Other factors, including a shortage of truck drivers, shipping disruptions, a flood of coal mines in China and a drought that has dented hydropower generation, are also driving prices higher.

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Edward Moya of OANDA said in a statement: “Uncertainty around the energy crisis is likely to keep crude oil prices higher until it appears likely that the oil market is heading toward equilibrium. The natural gas shortage will not go away any time soon and will continue to provide additional demand. on crude oil. Suspension.

Meanwhile, stocks fell in Asia on Tuesday as higher oil, coal and other energy prices heightened concerns about inflation.

Standards fell in Tokyo, Hong Kong and Shanghai.

The Nikkei 225 in Tokyo lost 0.9% to 28230.61, while the S&P/ASX 200 lost 0.3% to 7280.70. In Seoul, Kospi fell 1.4% to 2,916.38

Hong Kong’s Hang Seng fell 1.7% to 24908.11 and the Shanghai Composite fell 1.8% to 3527.59.

Shares of e-commerce giant Alibaba Group lost 4.2% while shares of search engine company Baidu fell 4%, and shares of Tencent Holdings, which operates the popular messaging service WeChat, fell 2.9%.

Shares also fell in India and Taiwan, but rose in Jakarta and Bangkok.

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Benchmark US crude oil rose 17 cents to $80.69 a barrel in electronic trading on the New York Mercantile Exchange. It rose 1.5 percent to $80.52 a barrel on Monday.

Brent crude, the international pricing standard, rose 25 cents to $83.90 a barrel.

The US dollar slipped to 113.13 yen from 113.32 yen late Monday. The euro rose to $1.1565 from $1.1553.

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Damien J. Troyes, business writer for AP Business contributed.

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