- US stocks finish day lower
- Bitcoin tops $71,000
- GameStop surges ahead of earnings
4:08pm: Record rally stalls
US stocks took a breather from their record-setting rally on Monday, with all three major indexes finishing the day lower.
The Dow Jones was down 0.4% at 39,313 points, and the S&P 500 and Nasdaq were both 0.3% lower at 5,218 and 16,384 points, respectively.
Bitcoin-holding company MicroStrategy Incorporated (NASDAQ:MSTR) booked an almost 22% gain as the coin itself added 8% at about $71,000.
Meanwhile, Video game retailer and meme stock GameStop Corp (NYSE:GME) finished the day 15.5% higher at $15 ahead of its quarterly earnings report due on Tuesday.
12:28pm: US stocks hold lower
Wall Street is still trading lower as it heads into lunch, with the leading indexes all appearing to be slightly hungover from a stellar five days of trading last week.
The Dow Jones is down around 111 points at 39,363, while the Nasdaq and S&P 500 dropped 23 and 8 points respectively.
Growing concerns surrounding the safety of the airline industry sent United Airlines shares lower, while a leadership shake-up at Boeing helped shares climb higher.
Chipmakers also experienced a dip after China said it would limit the use of foreign technology for its government computers and servers.
However, it appears much of the market is waiting for Friday's release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation measure.
Economists expect the PCE to remain stable at 2.8% year-over-year. Current projections show a slim chance of a step down in the cost of borrowing at the May meeting but a significantly higher likelihood in June, following a shift in the odds from 59% to 73%.
10:33am: Markets open in red as Apple, Microsoft slip
The Dow Jones shed 92 points to sit lower at 39,383 as the markets opened on Monday, weighed down by losses at the likes of Intel, Apple and Microsoft.
The S&P 500 and Nasdaq slipped 7 and 13 points respectively in the meantime, to sit at 5,226 and 16,415.
Intel Corp (NASDAQ:INTC, ETR:INL) was among technology firms to face a hit on Monday morning, with shares in the firm falling 2% in early trading following news China would limit the use of US-made chips in government computers.
Apple Inc (NASDAQ:AAPL, ETR:APC) and Microsoft Corp (NASDAQ:MSFT) faced hefty losses too, falling 1.3% and 1% respectively after the European Union said a major investigation would be carried out into their compliance with new laws.
Elsewhere, United Airlines dipped 5.4% as trading got underway on warnings of heightened Federal Aviation Administration scrutiny following a string of incidents.
Micron Technology Inc (NASDAQ:MU) was among the day’s risers meanwhile, with gains of 6.4%, following a rally last week after the firm’s AI boom-driven earnings beat.
Boeing Co (NYSE:BA, ETR:BCO) also gained early on Monday, climbing 1.5% on news its chief executive Dave Calhoun was to leave the manufacturer as pressure continues to swirl around its safety issues.
8:12am: Markets called lower
US markets are expected to start the week lower on Monday’s opening bell, following a rally prompted by the Fed’s decision to hold interest rates last Wednesday.
Futures had the Nasdaq starting the day 106 points lower at 18,468, while the Dow Jones and S&P 500 were due to sit 94 points and 18 points lower at 39,774 and 5,275 respectively.
Weighing down indexes were technology giants Apple Inc (NASDAQ:AAPL, ETR:APC), Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) and Alphabet Inc (NASDAQ:GOOG), which all slipped in pre-market trading on news of a major investigation into their compliance with new European Union laws.
These include Meta’s use of paid subscription services on the likes of Instagram and Facebook for those who do not want to see adverts on the social medias.
Apple and Alphabet-owned Google will be probed on how they restrict apps from promoting cheaper alternatives outside of their own stores, meanwhile.
Apple fell 0.7% ahead of the market’s opening on the news, while Meta was down 0.75% and Alphabet slipped 0.34%.
As per XTB’s Kathleen Brooks, news that China would limit the use of US-made chips in government computers is also set to weigh on markets early in the week.
Indeed, Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) was down 3.3% ahead of Monday’s opening bell, while Intel Corp (NASDAQ:INTC, ETR:INL) was off 4.1%.
“This is a theme that is likely to grow as we move towards the US elections at the end of this year,” she said.