US stocks fall on weak China data

[NEW YORK]

WALL Street stocks fell early on Monday, following disappointing Chinese economic data amid rising expectations that the Federal Reserve will soon announce plans to taper its stimulus programme.

Analysts cited weaker-than-expected China retail sales and industrial output as the latest sign that the Delta variant of Covid-19 is slowing economic recovery.

The United States has also had a sharp uptick in Covid-19 infections, with some cities reimposing mask mandates, and data showing signs of eroding confidence and slowing activity.

About 35 minutes into trading, the Dow Jones Industrial Average was down 0.7 per cent at 35,285.21.

The broad-based S&P 500 dropped 0.5 per cent to 4,444.88, while the tech-rich Nasdaq Composite Index declined 0.8 per cent to 14,708.43.

The Dow and S&P 500 had ended at records on Friday, setting their fourth consecutive all-time high close.

Markets also are fixated on the Fed's plans following comments in recent days from central bank officials suggesting an announcement on trimming asset purchases could be imminent. The Fed will release its minutes from the July meeting later this week.

Markets are keeping an eye on the upheaval in Afghanistan, but analysts do not expect a significant impact on trading.

Among individual companies, Tesla fell 3.6 per cent as the US authorities announced a probe of its Autopilot driver-assistance service, citing 11 crashes.

AFP