U.S. banal futures fell sharply connected Monday, with those for the Dow Jones Industrial Average tumbling 500 points, arsenic Hong Kong-listed spot companies came nether caller pressure.
Investors besides were positioning up of this week’s Federal Open Market Committee meeting.
How are banal futures trading?
- Dow Jones Industrial Average futures YM00, -1.87% dropped 671 points, oregon 1.9%, to 33,791.
- S&P 500 futures ES00, -1.72% fell 78 points, oregon 1.8%, to 4,343.
- Nasdaq-100 futures NQ00, -1.69% tumbled 1.7%, oregon 260 points, to 15,066.
On Friday, the Dow Jones Industrial Average DJIA, -0.48% fell 166 points, oregon 0.5%, to 34,585, the S&P 500 SPX, -0.91% declined 41 points, oregon 0.9%, to 4,433, and the Nasdaq Composite COMP, -0.91% dropped 138 points, oregon 0.9%, to 15,044.
For the week, the Dow saw its 3rd consecutive play decline, losing 0.1% and booking its longest play losing streak since the 4 weeks ending Sept. 25, 2020, according to Dow Jones Market Data. The S&P 500 fell 0.6% successful a 2nd consecutive week of losses, portion the Nasdaq Composite mislaid 0.5%, besides booking 2 consecutive play falls, according to FactSet.
What’s driving the market?
Is this the correction that immoderate strategists person anticipated?
A downturn successful China’s spot market, which suffered dense losses Monday, with shares of China Evergrande 3333, -10.24% falling 13% successful Hong Kong, were threatening to resistance stocks sharply lower.
Markets were closed successful mainland China for a holiday, but the Hang Seng HSI, -3.30% dropped implicit 3%.
The 8.25% Evergrande enslaved that has involvement payments owed this week was trading astatine astir 29 cents to the dollar connected Monday, according to Reuters.
That is arsenic Wall Street investors are poised to prime up wherever they near disconnected past week — connected a weaker footing.
“The dip is owed to a assortment of causes, including fading net estimates, uncertainty related to shifting monetary policy, and instability successful the world’s 2nd largest system arsenic a effect of escalating crackdowns,” said Naeem Aslam, main marketplace expert astatine AvaTrade, successful a enactment to clients.
Markets volition beryllium intimately watching for immoderate speech of tapering astatine the Fed’s two-day argumentation meeting that begins Sept. 21. The cardinal bank’s ultra-easy argumentation stance, enactment successful spot much than a twelvemonth agone to assistance the system header with the pandemic, looks untenable to immoderate fixed spikes successful inflation.
The system has been giving disconnected mixed signals, though, amid rising cases of coronavirus owed to the delta variant. Friday’s losses for Wall Street came arsenic a speechmaking connected user sentiment held adjacent to a astir 10-year low.
Analysts besides were discussing the inability, truthful far, of Congress to summation the indebtedness ceiling.
“Investors already had a batch to digest recently, [and] the debt crisis successful some of the world’s 2 biggest economies (Evergrande & U.S. debt ceiling) combined with uncertainties astir the Fed’s determination this week astir the timeline for immoderate tapering are denting marketplace sentiment,” said Pierre Veyret, method expert astatine ActivTrades.
English (US) ·