Stocks fall on Wall Street as the market experiences a period of volatility. The S&P 500 fell 0.6% on Wednesday morning. The benchmark has alternated gains and losses of over 1% over the previous four days. The Dow Jones Industrial Average slipped 0.5% and the Nasdaq slipped 0.7%. International markets also sold off, with trade in Japan, South Korea, Germany and France all falling by more than 1%. Energy prices retreat after a strong recovery which has helped rekindle inflationary fears among investors. US oil fell 1.6% to $ 77.66 a barrel and natural gas fell 8.1%. The yield on the 10-year Treasury bill fell to 1.51%.
THIS IS A CURRENT UPDATE. AP’s previous story follows below.
Global stocks slid in cautious trading on Wednesday, ignoring a rally on Wall Street led by tech companies and banks that wiped out most of the losses from the previous day’s sell-off.
The French CAC 40 fell 1.9% early in trading to 6,450.56, while the German DAX fell 2.1% to 14,869.63. The UK FTSE 100 lost 1.6% to 6,964.13. The future of Dow industrials fell 0.9% to 33,860.00. S&P 500 futures were down 1.2% to 4,280.00.
Japan’s Nikkei 225 benchmark fell 1.1% to end at 27,528.87 for its eighth consecutive session of losses.
South Korea’s Kospi fell 1.8% to 2,908.31. The Australian S & P / ASX 200 lost 0.6% to 7,206.50. The Hong Kong Hang Seng edged down 0.6% to 23,966.49. The trade was closed in Shanghai for the Chinese national holidays.
Concerns remain in Asia over ongoing coronavirus infections, although hopes are growing that economic activity will be closer to normal later this year, rebounding from the deep downturn in 2020.
âOn the risk front, China’s credit problems and contagion risks have certainly not abated, with developer concerns still surfacing. As such, caution has not been thrown to the winds, âsaid Tan Boon Heng of the Asia and Oceania Treasury Department at Mizuho Bank in Singapore.
The risk of default by real estate developer China Evergrande Group of defaulting on its debt of more than $ 300 billion has alarmed investors already worried about the slowdown in Chinese growth.
The outlook for Japan, the world’s third-largest economy, remains uncertain. Fitch’s agency maintained a “negative outlook” for Japan, citing “downside risks to the macroeconomic and fiscal outlook from the coronavirus shock.”
Shares fell in New Zealand after its central bank raised interest rates for the first time in more than seven years, removing some of the support it put in place when the coronavirus pandemic began.
The Reserve Bank raised the benchmark rate from a record high of 0.25% to 0.5%. The move came despite a lockdown in Auckland due to a coronavirus outbreak.
The bank said inflation is expected to rise to 4% in the short term before falling to 2% in the medium term.
The market has been choppy for weeks, with inflation worries driving up and down swings for tech companies and the market at large.
Yet Wall Street still expects solid corporate profit growth when the third quarter earnings season kicks off later this month. S&P 500 companies are expected to post a 27.7% increase in profits for the July-September quarter from a year earlier, according to FactSet.
In energy trading, benchmark US crude fell 27 cents to $ 78.66 a barrel in electronic trading on the New York Mercantile Exchange. It gained $ 1.31 to $ 78.93 a barrel on Tuesday.
Brent crude, the international standard, fell 26 cents to $ 82.30 a barrel.
In currency trading, the US dollar rose from 111.45 yen to 111.56 Japanese yen. The euro cost $ 1.1546, compared to $ 1.1601.