Stocks on Wall Street fell on Monday, along with the S&P 500, the benchmark US index, 1.3 percent and the Nasdaq Composite down 2.1 percent.
Apple, Amazon, Google and Microsoft all closed less than 2 percent, while Facebook was down 54.9 percent. The biggest tech companies have a huge influence on the S&P 500 and Nasdaq.
The S&P 500 is down 5.2 percent since its Sept. 2 record, as investors weighed in on concerns about the continued disruption to the economy and supply chain by the delta version and the effects of political fracturing on the economy. They are also eyeing a plan by the Federal Reserve to start cutting back – or tapering off – the $120 billion of bonds it is buying every month during the pandemic.
“The rally we have seen in the stock market is behind a supportive policy from the government and central banks,” said Fiona Cincotta, senior financial market analyst at Forex.com. “When you move to tapping, you’re moving to higher interest rates, and that’s not as beneficial to businesses as we’ve had over the past year and a half.”
Oil prices rose 2.2 percent to $77.55 a barrel on Monday with US crude benchmark West Texas Intermediate. The benchmark climbed above $78 earlier on Monday, its highest price since 2014. officers of OPEC, Russia and other oil producers met on Monday and decided to stick to its previous agreement to gradually add oil to the market despite rising energy demand. Shares of Devon Energy Corporation were up 5.3 per cent, while Diamondback Energy gained 4.6 per cent.
on Sunday, Francis Haugen, a former Facebook employee who is due to testify before Congress on Tuesday, appeared on “60 Minutes” to discuss the social media giant’s business practices. “Facebook has shown time and again that it chooses advantage over security,” Ms Haugen said at the event. Shares of the social media giant started the day with a fall of nearly 4 per cent.
Then, Facebook’s apps, including Instagram and WhatsApp, went down for an extended period For many users on Monday, that’s dragging its shares even further down. While it is common for websites to go down briefly, an outage in the size and scope of Monday is rare.
A Senate votes on a stand-alone bill that raise the statutory limit on federal borrowing It is expected to fail among Republican filibuster by December 2022. Treasury Secretary Janet Yellen has told Congress that the federal government will default on its debt if the limit is not raised by October 18. President Biden Calls Republicans “reckless” and “disrespectful” Americans could see the impact earlier this week if Senate Democrats weren’t able to vote on raising the debt limit if Senate Democrats weren’t able to vote on Monday.
Ongoing supply chain disruptions are also on investors’ minds. abroad, complete or partial factory shutdown The outbreak of the delta version of the coronavirus, as well as power outages, have resulted in shipping delays and rising costs.
“Where we see November and December going will depend on how companies view their outlook,” Ms Cincotta said. “As far as the energy crisis and supply chain disruptions are concerned, we may see some conflicts that the economy faces that will not be resolved quickly.”
shares of china evergrande Hong Kong’s stock exchange was suspended on Monday after reports of “large transactions”. Since then the real estate developer is under close watch of foreign investors. missed two Significant interest payments on US dollar bonds.
The return on government bonds increased as investors sold some of their protected assets. The yield on 10-year Treasury notes rose one basis point, or 0.01 percentage point, to 1.49 per cent.
European stock indexes were lower, with the Stokes Europe 600 down 0.5 percent.