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Home LATEST NEWS Wall Street opens lower, heading for another month of losses

Wall Street opens lower, heading for another month of losses

NEW YORK (AP) — Stocks are opening lower on Wall Street again, on track to close another month with losses. The S&P 500 fell 0.5% in the early hours of Friday. The benchmark index is headed for its sixth weekly loss in the past seven, one of its worst months since the 2020 coronavirus crash and its third consecutive losing quarter. Bond markets were calmer than recently as bond yields declined. Shares of Nike sank in one of the worst losses on Wall Street after it said it had to cut prices to clear suddenly inflated inventories.

THIS IS A LAST MINUTE UPDATE. The previous AP story follows below.

Wall Street pointed to small gains ahead of the open early Friday after investors got more ominous inflation data from Europe as they awaited a US government report on consumer spending.

Dow Jones Industrial Average futures rose 0.1% and S&P 500 futures rose 0.3% after the benchmark index fell to its lowest level in nearly two years on Thursday.

Wall Street will turn its attention on Friday to a consumer spending report from the Commerce Department that could provide insight into the latest inflation levels.

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Last month’s report showed consumer prices rose 6.3% in July from a year earlier after posting a 6.8% annual increase in June, the biggest increase since 1982. even food, may have peaked.

There is some lingering hope that the Fed could signal a moderation in rate hikes if inflation shows more signs of easing.

In the United States, the Commerce Department’s Personal Consumption Expenditures (PCE) index is less well known than the Labor Department’s Consumer Price Index (CPI).

But the Fed prefers the PCE index as a gauge of inflationary pressures, in part because the Commerce index attempts to measure how consumers adjust to rising prices, for example by substituting cheaper store brands for more expensive brands.

Shares of Dow component Nike Inc. fell 11% in premarket trading after the shoe and apparel company reported late Thursday that inventories rose 44% from a year earlier.

Global stocks were mixed on Friday after a report showed inflation in the 19 countries that use the euro soared to a record and data from China said factory activity weakened there.

Inflation in Germany, France and other euro zone countries accelerated to 10% in September from 9.1% the previous month, the statistics agency Eurostat reported. That was the highest since record-keeping began for the euro in 1997.

Investors are increasingly concerned that the global economy could slip into a recession following aggressive interest rate hikes this year by the US Fed and central banks in Europe and Asia to cool the economy. inflation is at a multi-decade high.

Markets tumble this week after British Prime Minister Liz Truss announced plans for tax cuts that investors worry will fuel inflation. Meanwhile, global demand for exports is weakening and Russia’s attack on Ukraine has disrupted oil and gas markets.

“We’d be inclined to argue that we haven’t hit rock bottom yet,” ING economists said in a report.

On Thursday, German Chancellor Olaf Scholz said the world’s fourth-largest economy faces a “double whammy” from inflation and rising energy prices.

In midday trading, London’s FTSE 100 rose 0.2% and Frankfurt’s DAX rose 0.3%. The CAC 40 in Paris added 0.6%.

On Thursday, the S&P 500 fell 2.1% to its lowest level in almost two years after strong US jobs data reinforced expectations that the Federal Reserve will stick to plans for more rate hikes. Interest rates.

The Dow Jones fell 1.5% and the Nasdaq Composite lost 2.8%.

In Asia, the Shanghai Composite Index fell 0.6% to 3,024.39 after surveys of manufacturers showed factory output, new export orders and manufacturing employment all declined in September.

Tokyo’s Nikkei 225 fell 1.8% to 25,937.21 and Hong Kong’s Hang Seng gained 0.5% to 17,257.08. Seoul’s Kospi lost 0.7% to 2,155.49.

Sydney’s S&P ASX 200 fell 1.2% to 6,474.20 while India’s Sensex advanced 1.8% to 57,421.45. New Zealand and Southeast Asian markets declined.

Stock markets and the value of the British pound rallied on Wednesday after the Bank of England said it would buy government bonds to support its price. But markets resumed their slide on Thursday after Truss shrugged off criticism and defended his tax cut plan despite a call from the International Monetary Fund to reverse course.

The S&P 500 is on track to close September down 8% for the month. It is down more than 20% for the year as investors await a break in inflation that has prompted the Fed to raise interest rates five times.

The yield on a two-year US Treasury, or the difference between its market price and payment at maturity, briefly widened to 4.2% before dipping back to 4.16% Thursday morning from 4 .14% from Wednesday.

Stronger-than-expected US jobs data on Thursday reinforced expectations that the Fed will be comfortable sticking with plans to raise interest rates further and keep them elevated over the next year.

In China, surveys of manufacturers by business news magazine Caixin and an official industry group found production and new export orders were down. That was in line with expectations that the Chinese manufacturing boom would fizzle out due to weak global demand.

“It looks like the slump in external demand will deepen,” Zichun Huang of Capital Economics said in a report.

In energy markets, benchmark US crude gained 27 cents at $81.50 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 92 cents Thursday to $81.23. Brent crude, used to set international oil prices, rose 21 cents to $87.39 a barrel in London. It lost 83 cents the previous session at $88.49.

The dollar rose to 144.55 yen from 144.43 yen on Thursday. The euro fell to 97.62 cents from 97.90 cents.

McDonald reports from Beijing; Ott of Washington.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.



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