NEW YORK (awp international) – US stocks fell red on Monday after an initial stabilization. After the previous week’s price collapse, nervousness remained high. New statements from central bankers fueled investor fears of further significant interest rate hikes by the US Federal Reserve in the fight against high inflation and related economic downturn.
The leading Dow Jones Industrial Index was briefly in the profit zone in early trading and recently fell 0.95 percent to 29,310.68 points. The stock market barometer had meanwhile fallen to its lowest level since the beginning of the year.
The market-wide S&P 500 fell 0.75% to 3665.41 points. The Nasdaq 100 technology index fell slightly to 11,304.73 points.
“We are in a dark period,” wrote Ed Yardeni, president of the analytical company of the same name. Dark clouds were building up for the US economy as the latest data indicated a pronounced economic slowdown. “And the risks of a full-blown recession also seem to be increasing.”
Earlier in the week, growth fears again fueled important currency controls. According to Susan Collins, president of the Boston Regional Reserve Bank, further monetary tightening is needed to curb stubbornly high inflation. She warned that the process could lead to job losses. Atlanta Fed Chairman Raphael Bostic said the Federal Reserve still has a long way to go to control inflation.
In the Dow, only the shares of retailer Walmart, considered insensitive to the economy, held up and rose by half a percentage point. At the end of the index, the shares of insurer Travelers lost more than three percent. Like other industry newspapers, they suffered from the fact that an ever-growing tropical storm was heading towards the state of Florida. Storm Ian is expected to turn into a hurricane on Monday and continue to strengthen thereafter. Consequently high losses are expected, which may have to be borne by the insurers.
Meanwhile, the shares of casino and resort operator Las Vegas Sands have risen by more than 12%. The Macau government previously announced that it would reopen the gambling paradise to tourists from November. Like mainland China, the Chinese Special Administrative Region follows a strict zero-Covid policy with numerous restrictions.
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