US stocks fell on Monday as Wall Street entered a short holiday trading week.
Stock and bond markets will be closed thanksgiving on thursday and closes at 1 p.m. ET on Friday.
The S&P 500 Index (^GSPC) fell 0.6%, while the Dow Jones Industrial Average (^DJI) decreased by about 100 points, or 0.3%. The tech-heavy Nasdaq Composite (^IXIC) decreased by 0.9%.
Oil continues to lose money after reports of Saudi Arabia and other OPEC countries discussion about increasing production. One series of deaths related to COVID in China has also raised concerns the country may implement new restrictions to mitigate recent outbreaks. Both events raised demand concerns, with West Texas Intermediate (WTI) crude oil futures falling more than 5% to around $75 a barrel on Monday morning.
The US dollar appreciated against other currencies due to concerns surrounding the COVID picture in China.
Bitcoin (BTC-USD) slip 3% to hover near $16,000 and ethereum (ETH-USD) fell 5% to just over $1,100 due to the impact of crypto exchanges FTX collapse continues to seep in electronic money market.
Meanwhile, shares of Disney (dis) roar 6% despite a bearish day in other parts of the market after the media giant made the surprise announcement late Sunday that Former CEO Bob Iger will return lead the company as CEO, effective immediately.
Monday’s move comes after a Faint week on Wall Street, with sentiment weighed down by fresh concerns about higher interest rates. The benchmark S&P 500 has fallen about 0.7% during this time period and the Nasdaq is down 1.6%, while the Dow is mostly flat.
Historically, Thanksgiving week has been bullish. Over the past half-century, the S&P 500 has gained an average of 0.5% during the holiday week and posted positive returns 68% of the time, according to the report. data from Schaeffer Investment Research. The Wednesday before Thanksgiving was 78% of the time active with an average gain of 0.3%, while the following day, 66% of the time, an average gain of 0.2%.
“The stock market’s ‘lower inflation’ rally lost some momentum last week, but the bulls are hopeful,” said Chris Larkin, managing director of trading at Morgan Stanley’s E*. recovery momentum will get back on track possibly looking at historical trading trends around Thanksgiving.” TRADE said in a note. “Although people take a break for Thanksgiving, the stock market doesn’t tend to do the same: Even in a shortened trading week, the SPX since 1950 has moved almost as much during the week. Thanksgiving is like in the average five-day trading period.”
Investors are in for a quiet few days. Minutes from the Federal Reserve’s November rate-setting meeting, due on Wednesday, are the highlight of this week’s mild economic calendar. On the corporate side, several other earnings are set for release, including Dell Technologies (DELL), HP (HPQ), Dollar tree (DLTR) and Nordstrom (JWN).
Readings of minutes from the FOMC, the body that sets monetary policy, is likely to suggest that officials are planning to raise interest rates by half a point at their December meeting.
DataTrek’s Nicholas Colas pointed out that the likelihood of adopting more aggressive monetary policy next year increased last week, both in terms of where the federal funds rate will peak and where it will end next year.
About a week ago, futures pointed to odds of 81% to 19% for a 50 basis point rate increase versus 75 basis points next month after the consumer price index softened. Following hawkish assertions from officials about the need for further rate hikes, the 0.75% hike rate rose slightly to 24%.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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