4:05: Tumbling stocks push markets deep into the red at close
The Dow Jones Industrial Average spent Monday on the decline shedding 323 points (0.94%) to sit at 34,002 when markets closed. The NASDAQ also faced a triple digit loss of 311 points (2.14%) to end at 14,255, as tech stocks plummeted across the board.
The S&P 500 couldn’t find its footing either, sliding 56 points (1.3%), holding at 4,300 by the end of the trading day.
The broad decline was countered by a 1.09% uptick in the 10-year Bond Yield, as investor sentiment shifts to caution amid speculation of rising inflation rates, higher energy costs and supply chain disruptions.
Economic data paired with 3Q earnings anticipated for later this week could be another headwind to the already battered markets.
Elsewhere Brent Crude rallied to a seven-year high when prices topped US$81 a barrel. The rising oil prices has prompted OPEC to agree to up production, cautiously, as demand accelerates.
12.05 pm: Tech stocks lead Monday’s market selloff
US stocks fell sharply in noon trading, as the benchmark 10-year Treasury yield rose once again to just under 1.5%.
At midday, the Dow fell 349 points to 33,987, while the S&P 500 lost 59 points at 4,298 and the tech-heavy Nasdaq dropped 323 points, or 2.2%, to 14,243.
“Friday’s optimism in US markets has disappeared in a flash, and with it have gone hopes of a continued recovery in equity markets,” IG chief market analyst Chris Beauchamp said.
“This marks a resumption of the ‘sell the rallies’ approach that dominated in September, and it seems that this is still the way to go, as a cocktail of inflation, rate hike and China worries combine to send buyers running from the market once again,” Beauchamp added.
Big Tech led the decline in equities, with Alphabet Inc (NASDAQ:GOOG) down nearly 4% and Apple Inc (NASDAQ:AAPL) off almost 3%.
Other notable movers included shares of Tesla Inc (NASDAQ:TSLA), which rose 2% after the company said it delivered 241,300 electric vehicles during the third quarter, well above analyst estimates.
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9.42am: US stocks mixed at open
US benchmarks got off to a volatile start on Monday and were mixed, as had been expected in early deals, as traders were generally jittery on risk.
The Dow Jones Industrial Average added around 46 points at 34,372. The S&P 500 lost around five points at 4,351.
The tech heavy Nasdaq index dropped around 100 points to stand at 14,466.
Big tech stocks were getting hit in early deals in New York as traders once again eyed the rising bond yields. The US 10-year Treasury yield was up again on Monday, trading at 1.495%.
Apple shares shed 1%, while Amazon dropped 1.07% and Microsoft was down 1.01%.
Tesla shares though accelerated 2.4% higher as the electric car titan revealed it had delivered 241,300 electric vehicles during the third quarter, which smashed analysts’ estimates.
6.30am: US stocks seen opening mixed
US stocks are expected to open mixed as investors await news on beleaguered Chinese property giant Evergrande after its shares were suspended in Hong Kong ahead of a debt maturity due today.
Futures for the Dow Jones Industrial Average futures added 1.1% in Monday pre-market trading, while the broader S&P 500 index gained 0.79% and those for the tech-heavy Nasdaq-100 declined 0.39%.
The hugely indebted developer's property management division said the trading halt was pending a possible takeover offer or merger and a “general offer for the shares of the company”.
Both parent company and property management arm were suspended in anticipation of “a major transaction”, Evergrande said.
While no details were given, there was speculation that rival developer Hopson was preparing to buy a major stake in Evergrande Property Services.
Wall Street started October on the front foot, with the Dow Jones Industrial Average increasing by 483 points, or 1.43%, to 34,327 on Friday, while the S&P 500 rose 1.15% to 4,357. The Nasdaq increased 0.82% to 14,566.
“The debt ceiling and other fiscal worries that had weighed on Wall Street seemed to melt away on Friday, at least temporarily, with the S&P 500 advancing 1.2% and so almost completely erasing Thursday’s loss,” commented Daiwa Capital Markets analyst Emily Nicol.
“Some comfort was taken from a robust ISM manufacturing survey for September and a solid lift in consumer spending in August, even as supply constraints lowered September auto sales to a 17-month low.
“Of particular note are developments in Hong Kong, with the Hang Seng down more than 2% after trading in shares of China Evergrande Group and its property services unit was halted – possibly signaling an impending asset divestment – with the market also awaiting news regarding payment of a debt maturity due today.”