Stocks fall on Wall Street, dragged down by the collapse of technology companies | national news

April 11, 2022

Montana Economy

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Shares fell in morning trading on Wall Street on Monday as the market extends a losing streak from last week.

The S&P 500 fell 0.8% at 10:20 a.m. EST. The Dow Jones Industrial Average fell 68 points, or 0.2%, to 34,654 and the Nasdaq fell 1.3%.

The benchmark S&P 500 and the Nasdaq just suffered their first weekly loss in four weeks.

Tech stocks fell sharply and were the largest weights in the market. Microsoft fell 3.7% and Apple 1.7%.

Energy stocks were among the biggest losers as they tracked lower oil prices. US crude oil prices fell 4.1% and Exxon Mobil fell 2.5%.

Oil prices remain volatile amid the Russian invasion of Ukraine, which has put increased pressure on global energy supplies. World oil prices rose about 25% for the year, although they declined somewhat throughout April.

Industrialists and banks held up better than the rest of the market. Boeing rose 1.5% and Citigroup 2%.

Bond yields gained ground. The 10-year Treasury yield rose to 2.76% from 2.71% on Friday night.

Twitter was the focus of concern after Tesla’s mercurial billionaire Elon Musk said he would ultimately not join the company’s board. The stock rose 0.6%. Musk recently became the company’s largest shareholder and is now free to increase his stake.

Investors continue to worry about rising interest rates, Russia’s war on Ukraine and China’s efforts to contain coronavirus outbreaks. In China, automakers and other manufacturers are cutting production after authorities tightened restrictions to help stem coronavirus outbreaks in Shanghai and other cities.

Wall Street will receive several updates this week that may provide more clues as to how the broader economy has handled rising inflation.

The Labor Department will release its March consumer price report on Tuesday, while the Commerce Department will release its March retail sales report on Thursday. These reports have been closely watched as investors try to understand the impact of rising prices on consumer spending. Any significant slowdown in consumer spending would likely translate into a sharper-than-expected slowdown in economic growth this year.

The latest economic updates come as investors anticipate a more aggressive shift from the Federal Reserve as it tries to blunt the impact of rising inflation. The central bank has already announced an increase of a quarter of a percentage point in its key rate.

Fed officials said in the minutes of last month’s meeting that they plan to raise the U.S. benchmark rate to double the normal amount in future meetings. They also indicated that they would reduce Fed bond holdings, which would push up long-term borrowing rates.

Wall Street will also start getting more details on how individual companies performed in the first quarter and what they expect moving forward. Delta Air Lines and JPMorgan Chase will release their latest financial results on Wednesday, while UnitedHealth Group, Wells Fargo and Citigroup will release their results on Thursday.

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