Wall Street slips as concerns rise of stricter China COVID curbs

  • Dow down 0.13%, S&P 500 down 0.39%, Nasdaq down 1.09%
  • Disney is jumping on Iger’s return as CEO
  • Grindr crashed after rocketing in the beginning
  • Tesla down to car recall, China COVID concerns

Nov 21 (Reuters) – Wall Street’s main stocks closed lower on Monday on concerns that China could take more drastic measures to fight the COVID-19 after it said it was facing its most severe test yet. the disease.

Beijing said on Monday it would close businesses and schools in hard-hit districts and tighten restrictions on entry into the city, due to the outbreak.

“There’s this concern that China is going to roll back some of the COVID restrictions that they were supposed to be lifting,” said Carol Schleif, deputy chief investment officer at BMO Family Office.

U.S. casino companies and businesses in China including Wynn Resorts Ltd ( WYNN.O ), Las Vegas Sands Corp ( LVS.N ), MGM Resorts International ( MGM.N ) and Melco Resorts & Entertainment Ltd all fell. at least 2%.

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The Dow Jones Industrial Average (.DJI) fell 45.41 points, or 0.13%, to 33,700.28, the S&P 500 (.SPX) lost 15.4 points, or 0.39%, to 3,949.94 and Nasdaq Composite (.IXIC) fell 5 points (.IXIC). 1.09%, to 11,024.51.

Trading volume was low on Monday, and may taper off toward Thanksgiving on Thursday, leaving markets more volatile. .

The total in US trading was 9.43 billion shares, compared to the 11.88 billion average for the entire session in the 20 days of trading.

“If you want to blame some of the gains on concerns about the increase in cases of COVID, that’s fine,” said Jack Janasiewicz, chief strategist and portfolio manager at Natixis Investment Managers Solutions. “It’s very difficult because of the size.”

Stocks pared losses in the afternoon after the President of the Federal Reserve of San Francisco, Mary Daly, said that officials should be careful to avoid a “severe decline.”

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Cleveland Fed President Loretta Mester echoed Daly, saying she supports a modest rate hike in December.

The S&P 500 Energy sector index (.SPNY) fell nearly 3% on Monday to its lowest level in four weeks as oil prices fell more than 5% after after a report that Saudi Arabia and other OPEC oil producers were discussing increasing production. The index, however, pared losses after Saudi Arabia refused to talk about it.

Energy is the only S&P 500 sector looking to gain for the year, up about 63%.

Walt Disney Co ( DIS.N ) rose 6.30% after Bob Iger returned as CEO of the entertainment giant.

The S&P 500 extended its decline from last week, as several Federal Reserve officials reiterated the central bank’s pledge to raise interest rates. until the rate of inflation stabilizes, as investors await the release of minutes from the Fed’s November meeting on Wednesday.

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Traders are widely tipped for a 50-basis hike at the December meeting, with higher prices expected in June.

Among other stocks, Tesla Inc (TSLA.O) fell 6.84% after the electric-car maker said it would recall cars in the United States over an issue that could cause the illuminate the tail lights.

Gay dating app Grindr (GRND.N) fell 46.00% amid weak market sentiment, after peaking at its debut on the New York Stock Exchange last session.

The decrease in risk outnumbered the increase on the NYSE by a 1.27-to-1 ratio; on Nasdaq, the 1.60-to-1 ratio favors buyers.

The S&P 500 posted 9 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 96 new highs and 220 new lows.

Reporting by Carolina Mandl, in New York, Ankika Biswas, Shubham Batra and Shreyashi Sanyal in Bengaluru; Edited by Arun Koyyur, Shounak Dasgupta and Grant McCool

Our Principles: The Thomson Reuters Trust Principles.

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