US: Stocks fall as large banks warn of losses

[NEW YORK] Wall Street stocks fell early Monday as turmoil involving US fund Archegos Capital Management affected international banks, and as markets eye key US economic reports this week.

Top global banks Nomura of Japan and Switzerland's Credit Suisse warned they could face significant losses following reports of their exposure to a US fund that liquidated billions in stocks last week.

Neither bank named the client but the warnings follow a Bloomberg News report that little-known Archegos Capital Management sold more than US$20 billion in stocks from US media and Chinese companies listed in New York on Friday.

About 50 minutes into trading, the Dow Jones Industrial Average was down 0.1 per cent to 33,031.35.

The broad-based S&P 500 shed 0.5 per cent to 3,953.04, while the tech-rich Nasdaq Composite Index dropped 0.8 per cent to 13,032.52.

Both the Dow and S&P 500 ended last week at fresh records, but equities have been choppy in recent weeks, with investors at times worried inflation will rise suddenly.

Markets are looking ahead this week to more details from President Joe Biden about a hefty new infrastructure proposal, which could cost up to US$3 trillion.

Key economic reports this week include the March jobs report and an update on consumer confidence.

AFP