U.S. stocks traded mostly lower early Monday, with Wall Street struggling for direction after falling last week to the lowest level since early November on recession fears.How stocks are trading
The Dow Jones Industrial Average
was down 12 points, or less than 0.1%, at 32,907.
The S&P 500
fell 16 points, or 0.4%, to 3,836.
The Nasdaq Composite
was off 104 points, or 1%, at 10,601.
The S&P 500 logged a 2.1% weekly loss last week, ending Friday at its lowest level since Nov. 9. The Dow Jones Industrial Average saw a 1.7% weekly fall and the Nasdaq dropped 2.7%.
What’s driving the market Investors have become increasingly concerned about a recession many feel is all but inevitable given the determinedly hawkish stance of major monetary authorities, such as the Federal Reserve and European Central Bank, who continue to battle high inflation. Read: The stock market is sliding because investors now fear recession more than inflation Last week, alongside the Bank of England and others, the two central banks increased interest rates by 50 basis points to multiyear peaks and stressed that borrowing costs would likely go higher for longer than the market had hoped. “The Fed and ECB seem determined to leave a lump of coal in everyone’s stockings this holiday season,” said Stephen Innes, managing partner at SPI Asset Management. “With economic data undershooting expectations, it’s not a stretch to think investors may shift their focus from inflation and the Fed to the growing impact that the Fed’s actions are likely to have on the economy in 2023,” Innes added. The soft performance on Wall Street in previous sessions and worries about a global slowdown saw Asian stock markets fall back on Monday, with China’s Shanghai Composite
among the weakest amid more concerns about spiking COVID infections in the world’s most populous nation. It may pay to take a long view on China, as it relaxes its COVID curbs, which have been seen as a brake on consumption in the world’s second-largest economy, said George Young, portfolio manager with Villere & Co., in a phone interview. Villere & Co. expect mining company Freeport-McMoran Inc.
for example, to benefit from a renewed pickup in copper demand as China’s economy eventually gets traction, Young said. Freeport looks set to see a down year in the near term but is set for 40% earnings growth three years out, predicated on China’s comeback, he said. Analysts noted that investors had shifted from believi …