US: Stocks fall as Dow snaps six-day streak

WALL Street stocks fell Monday (Oct 31), snapping the Dow’s winning streak, following disappointing Chinese and European data as markets look ahead to a key US Federal Reserve decision.

China’s purchasing managers’ index, a key gauge of manufacturing, fell to 49.2 in October, below the 50-point mark separating growth from contraction due to Covid-19 restrictions.

Meanwhile, Eurozone economic growth fell to 0.2 per cent in the third quarter, as inflation hit another record high on the back of soaring energy prices.

Ending six straight days of gains, the Dow Jones Industrial Average finished down 0.4 per cent at 32,732.95.

The broad-based S&P 500 shed 0.8 per cent to 3,871.98, while the tech-rich Nasdaq Composite Index fell 1.0 per cent to 10,988.15.

Analysts said the losses reflected profit taking after historically strong gains throughout October.

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Markets are looking ahead to this week’s Fed meeting. Investors are expecting the US central bank to again undertake a 0.75 percentage point interest rate hike in its latest move to combat inflation.

But there will be much focus on the tone from Fed chair Jerome Powell at a news conference Wednesday following the policy announcement. Hopes that the Fed could soon moderate its stance in light of weakening economic data have lifted stocks in recent weeks.

The agenda also includes October jobs data and reports on the manufacturing and services sectors, as well as earnings from Pfizer and Starbucks. AFP