Home Market News Stock Markets Wall Street falls on global economic slowdown fears

Wall Street falls on global economic slowdown fears

Wall Street falls on global economic slowdown fears

(Reuters) – Wall Street’s main indexes fell on Monday, dragged down by declines in high-growth technology shares, as fears of a global slowdown roiled the market for the second straight session.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 22, 2019. REUTERS/Brendan McDermid

On Friday, weak factory data from the United States, Europe and Japan resulted in the main indexes posting their biggest one-day percentage declines since Jan. 3, and also led to the inversion of U.S. Treasury yield curve for the first time since 2007.

Yields on U.S. 10-year treasury yields modestly rose on Monday after data showed German business morale improved unexpectedly in March, but spreads between U.S. three-month and 10-year Treasury yields moved closer again to inversion.

An inverted yield curve is widely seen as a leading indicator of recession.

“Markets are not overcoming concerns of the global economic climate and the fact that the 3-month treasury yields rose above that of the 10-year notes, creating an inversion,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.

“The concerns of global growth, without a China-U.S. trade deal, will linger in the background and continue to weigh on markets.”

Top U.S. officials travel to Beijing for the latest round of high-level talks, which are scheduled to start on March 28.

The technology sector dropped 0.81 percent, weighing the most among the 11 major S&P sectors.

Apple Inc’s shares fell 1.6 percent ahead of an event where the company is widely expected to launch its video streaming service. The event is scheduled to start at 1 p.m. ET.

Interest rate-sensitive financials fell 0.50 percent.

Investors largely shrugged off Special Counsel Robert Mueller’s report that President Donald Trump’s campaign did not collude with Russia, despite S&P 500 futures initially rising on Sunday. The report left unresolved the issue of whether Trump obstructed justice by undermining the investigations that have dogged his presidency.

At 10:11 a.m. ET, the Dow Jones Industrial Average was down 103.92 points, or 0.41 percent, at 25,398.40, the S&P 500 was down 11.84 points, or 0.42 percent, at 2,788.87 and the Nasdaq Composite was down 48.60 points, or 0.64 percent, at 7,594.07.

Boeing Co rose 1.1 percent, helping keep the industrials sector afloat.

The planemaker said it will brief pilots and regulators this week on software and training updates for its 737 MAX aircraft, with Ethiopian Airlines and Qatar Airways expressing confidence in the company despite a recent crash.

Akamai Technologies fell 4.6 percent, the most on the S&P, after a report brokerage Deutsche Bank had downgraded the stock to “sell” from “hold”.

Viacom Inc’s shares rose 5.2 percent, the most on the S&P, after the company renewed a contract with AT&T Inc to continue carrying its services.

Declining issues outnumbered advancers for a 2.43-to-1 ratio on the NYSE and for a 2.57-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded eight new highs and 67 new lows.

Reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila

Our Standards:The Thomson Reuters Trust Principles.