US Stocks Fall, Continue Losing Streak 05/16 09:36
Stocks fell in morning trading on Wall Street Monday, continuing a losing
streak that has brought the market down for six weeks in a row.
NEW YORK (AP) -- Stocks fell in morning trading on Wall Street Monday,
continuing a losing streak that has brought the market down for six weeks in a
The S&P 500 slipped 0.3% as of 10:19 a.m. Eastern. The Dow Jones Industrial
Average fell 91 points, or 0.3%, to 32,104 and the Nasdaq fell 0.3%.
Technology stocks led the decline. Apple fell 0.5% and Microsoft fell 1%.
The sector has been a particularly heavy weight on the broader market as
investors worry about high inflation and rising interest rates.
Retailers also fell broadly. Amazon slipped 1% and Starbucks fell 1.9%.
Bond yields fell and weighed down banks, which rely on higher yields to
charge more lucrative interest on loans. The yield on the 10-year Treasury fell
to 2.88% from 2.94% late Friday. Bank of America fell 1.3%.
Spirit Airlines rose 11.8% after JetBlue said it would make a hostile offer
for the budget carrier after Spirit rebuffed its earlier bids.
Defense contractor ManTech jumped 14.8% after investment firm Carlyle Group
said it will buy the defense contractor.
The broader market is in the midst of a slump as investors try to gauge how
companies and consumers are dealing with higher prices and whether central
banks can help ease the problem.
The Federal Reserve is in the process of pulling its benchmark short-term
interest rate off its record low near zero, where it spent most of the
pandemic. It also said it may continue to raise rates by double the usual
amount at upcoming meetings. Investors are concerned that the central bank
could cause a recession if it raises rates too high or too quickly.
Lingering supply chain problems continue to feed inflation, and China's
recent COVID-19 lockdowns have raised concerns that they may worsen. Russia's
war against Ukraine has made already high energy prices even more volatile,
which could also draw out rising inflation.
Oil prices were relatively stable, though U.S. crude oil prices are up more
than 50% for the year. Natural gas prices rose 5% and have more than doubled in
Wall Street is closely watching how consumers react to pressure from
inflation and will get several updates from the U.S. government and key
retailers this week. The Commerce Department on Tuesday will release its retail
sales report for April.
Home Depot and Walmart will report their latest financial results on Tuesday
and Target will report its results on Wednesday.