NEW YORK (AP) — Stocks are falling further from records as this week's lull on Wall Street continues. The S&P 500 fell 0.4% in early trading Tuesday, marking its second consecutive year of decline after closing at a record high last week. The Dow Jones Industrial Average fell 141 points, and the Nasdaq Composite Index fell 0.9%. Apple had one of the heaviest products on the market. The company is struggling due to concerns over sluggish iPhone sales in China. U.S. Treasury yields fell ahead of reports on services and factory orders. Further data on job openings and overall employment is expected to be released later this week.
This is the latest news. Previous articles from the Associated Press are below.
Wall Street on Tuesday pointed to modest losses as more retailers reported results ahead of the holiday season and Federal Reserve Chairman Jerome Powell's appearance in Congress later this week.
S&P 500 futures fell 0.3%, and Dow Jones Industrial Average futures fell 0.2%.
U.S. stocks are losing momentum from record highs as inflation appears to be calming, interest rates are likely to be cut and the U.S. economy has so far defied recession predictions. are doing.
As earnings season draws to a close, several major retailers are scheduled to report their latest quarterly results this week, giving analysts a clearer picture of how Americans feel about the economy and their personal finances. There is a possibility that it will be possible to understand the
Target reported a 58% increase in fourth-quarter profits, handily beating Wall Street expectations, as the retailer cut costs and maintained lean inventory. Shares of the Minneapolis-based company rose 8.5% before the bell Tuesday.
Costco Wholesale, Gap and Nordstrom released their holiday numbers this week.
Aerovironment, a Virginia defense contractor that specializes in drones, soared 17.5% before the bell after beating Wall Street revenue expectations and nearly doubling its profit target.
Several events scheduled for this week could disrupt the market.
On Wednesday, Federal Reserve Chairman Jerome Powell will testify before a House committee on monetary policy. He said the Fed's next action is likely to be a rate cut, but said there needs to be more evidence that inflation is falling decisively toward its 2% goal. That was before recent reports showed that inflation at both the consumer and wholesale levels was higher than expected.
Friday's report will outline the state of the U.S. job market, with economists expecting growth to slow after January's strong growth.
In European markets at noon, Germany's DAX, Paris' CAC 40, and UK's FTSE 100 all rose to even levels after falling slightly in the morning.
In Asia, Hong Kong's benchmark fell 2.6% after China's prime minister said the country's economic growth target for this year was around 5%, as expected. China's economy expanded at an annual rate of 5.2% last year, after declining to 3% in 2022.
Li Qiang also spoke at the opening ceremony of China's National People's Congress, saying that the Chinese government will raise 1 trillion yuan to fill funding gaps, support financially strapped local governments, and invest in both advanced technology and industry. ($139 billion) in long-term debt. in social support and education.
He said China would expand government-subsidized housing as part of a program aimed at reversing a slump in the real estate market after a crackdown on over-borrowing caused dozens of developers to default on their debts. Stated.
But Stephen Innes of SPI Asset Management said the government's intention to keep the budget deficit at 3% of China's gross domestic product (GDP) disappointed investors who had expected more aggressive action. I mentioned it in the comments.
“The unchanged 3% target was lower than expected, suggesting a cautious stance on fiscal policy,” he said.
The party congress is the year's biggest political event, but it mainly approves policies set by the ruling Communist Party's top leaders.
Initial reaction to Lee's speech, as well as the annual budget report released on Tuesday, was lukewarm. Hong Kong's Hang Seng Index fell 2.6% to 16,162.64, while the Shanghai Composite Index rose 0.3% to 3,047.79, little changed for much of the day.
Japan's Nikkei Stock Average ended flat at 40,097.63, just below Monday's record close.
In Seoul, the Kospi fell 0.9% to 2,649.40, while Australia's S&P/ASX 200 index fell 0.2% to 7,724.20.
India's Sensex fell 0.3% and Taiwan's Tyex rose 0.4%.
In other trading early Tuesday, benchmark U.S. crude oil fell 74 cents to $78 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard crude, fell 58 cents to $82.22 per barrel.
The dollar remained unchanged at 150.53 yen. The euro fell from $1.0856 to $1.0845.
On Monday, the S&P 500 fell 0.1%, coming off its recent all-time high. The Dow Jones Industrial Average fell 0.2%, and the Nasdaq Composite Index fell 0.4%.
