Rising COVID Cases Abroad Worry Investors
While investors are concerned about the rising COVID cases overseas, the holiday-headed economy looks gloomy, and the US stocks fell on Monday. At around 4 p.m., the S&P 500 had dropped. The Dow Jones Industrial Average declined 0.1%, while the Nasdaq Composite fell 1%.
Investors anticipated that if China’s COVID-19 containment steps weakened, the economic expansion would accelerate there – as well as globally. Residents in several Chinese cities were no longer required to show proof of a recent negative test to enter public spaces. They said that mandatory mass testing would no longer be carried out.
Developments at Home Add to Investor Pessimism
Investors are tracking an array of unsettling news in the United States and China. The holiday season is up and about. A railroad worker strike might interrupt some supply lines in December, causing paralysis. Investors will also examine the degree to which inflation is biting into consumers’ purchasing power throughout the holiday shopping season.
With the Thanksgiving holiday on Thursday, investors were forecasting a calm week on the data front. The release of the minutes of the recent Federal Reserve meeting is the most important economic event. Investors will be looking for indications from Fed officials on whether it will slow down its interest-rate increases.
More on Corporate News
Walt Disney ousted Chief Executive Bob Chapek with Robert Iger, the company’s former chairman, and CEO. Its stock increased by 6.3%. When Merck agreed to pay $1.35 billion for Imago BioSciences, the stock of the company more than doubled. Carvana’s stock has dropped 13%. While a pandemic winner, the used-car dealer’s once-plentiful financing options dry up, and its business declines – rushing to conserve cash.
The crypto market has struggled since the collapse of the exchange FTX, with Coinbase Global falling 8.9% to $15,755. Following the collapse, pessimism about digital asset prospects has intensified. Fears about other firms’ failures are also shaking investors’ cages.