US: Stocks fall ahead of heavy week of economic data

WALL Street stocks finished decisively lower on Monday on worries about China’s zero-Covid policy and caution ahead of key US economic data.

Unhappiness over China’s strict Covid-19 restrictions has sparked a wave of nationwide protests not seen since pro-democracy rallies in 1989 were crushed, and security forces have since filled the streets of cities like Beijing and Shanghai. The unrest erupted after months of mounting frustration over tough coronavirus restrictions, pointing to public division over a hardline stance that has slowed the world’s second-biggest economy.

“The market seems to be focused on China’s zero-covid policy and not a whole lot else,” said Art Hogan, analyst at B. Riley Financial. Hogan said investors are also waiting for key US employment and consumer pricing data later in the week, alongside a public appearance by Federal Reserve Chair Jerome Powell that will offer clues on whether a hoped-for moderation in monetary policy is in the cards.

The Dow Jones Industrial Average finished down 1.5 per cent at 33,849.46. The broad-based S&P 500 shed 1.5 per cent as well to 3,963.94, while the tech-rich Nasdaq Composite Index dropped 1.6 per cent to 11,049.50.

After last week’s advance, US indices were in the red the entire day, finishing near session lows. Among individual firms, Apple fell 2.6 per cent following a report that the company’s iPhone production had been hit by unrest at a vast China factory. AFP