S&P 500 loses 1%, Nasdaq breaks 5-day win streak ahead of earnings season; European markets close lower as investors prepare for more U.S. inflation data
U.S. equities fell Monday as Wall Street braced for big company earnings reports slated for later in the week which could signal how inflation is impacting businesses.
The Dow Jones Industrial Average shed 164.31 points, or 0.52%, to close at 31,173.84. The S&P 500 fell 1.15% to 3,854.43, while the Nasdaq Composite lost 2.26% to 11,372.60.
Casino stocks Wynn Resorts and Las Vegas Sands led Monday’s losses, falling more than 6% each on the back of worsening Covid trends in China, including a week-long shutdown of casinos in Macau. Shanghai also detected its first case of the BA.5 subvariant.
Twitter shares fell 11.3% after Elon Musk terminated a deal worth $44 billion to buy the social media company. The billionaire took issue with the number of bots and fake accounts on the platform and said Twitter wasn’t being truthful about how authentic activity on the platform was. However, the company said it gave Musk the information he needed to assess the claims.
European stocks closed lower on Monday as investors prepare for more key inflation data out of the U.S. this week.
The pan-European Stoxx 600 index provisionally ended 0.5% lower, with most sectors and major bourses in negative territory. Autos stocks led the losses, down 2.7%, while utilities bucked the trend to close over 1.2% higher.
German energy company Uniper fell toward the bottom of the Stoxx 600. Shares of the firm fell 15% after a dispute flared up between Germany and Finland over the cost of rescuing the gas importer. The company asked for a German government bailout last week but its Finnish main shareholder Fortum rejected calls for more help for the ailing firm.
Swiss travel retailer Dufry was among the top performers. Shares of the company rose more than 4% after it said it had agreed to buy Italian airport and motorway caterer Autogrill.
Source: CNBC, Investing.com