Markets Collapse on China COVID Concerns
November 28,2022 04:32 pm EST
Stocks fell Monday as social unrest from China''s prolonged Covid restrictions weighed on markets and pushed down oil prices.
The Dow Jones Industrials thundered lower 497.37 points, or 1.5%, to conclude Monday at 33,849.66.
The S&P 500 faded 62.1 points, or 1.5%, to 3,964.02.
The NASDAQ fell 176.86 points, or 1.6%, to 11,049.50.
Over the weekend, demonstrations broke out in mainland China as people vented their frustrations with Beijing''s zero-COVID policy. Local governments tightened COVID controls as cases surged, even though earlier this month Beijing adjusted some policies that suggested the world''s second-biggest economy was on its way to reopening.
Shares of companies with big production facilities in the country were under pressure. Apple dropped 2.8% after Bloomberg reported that unrest at a factory in China could mean six million fewer iPhone Pro units for the year.
Investors will be watching this week more earnings reports and a slew of economic releases that will give further information on the state of the consumer and the U.S. economy. Personal consumption data and the labour report for November will also be released.
Prices for the 10-year Treasury fell back, raising yields to 3.69%. Treasury prices and yields move in opposite directions.
Oil prices regained 64 cents to $76.92 U.S. a barrel.
Gold prices slid $14.40 to $1,739.60 U.S. an ounce.
Currencies