NEW YORK, Jan 24 — Wall Street stocks opened lower today, extending a January downturn amid worries over monetary policy changes and tensions over Russia’s actions near Ukraine.
Equities have been under pressure all month as investors recalculate the risk and reward of stock investments in light of the Federal Reserve’s sharp pivot towards tightening monetary policy after nearly two years of accommodation.
Adding to this, the United States, Britain and Australia ordered diplomats’ families to leave Kyiv as Russia deployed some 100,000 troops and heavy armour at the Ukraine border.
About 20 minutes into trading, the Dow Jones Industrial Average was down 1.6 per cent at 33,723.47.
The broad-based S&P 500 shed 1.9 per cent to 4,315.96, while the tech-rich Nasdaq Composite Index dropped 2.2 per cent to 13,470.24.
Among individual companies, Peloton Interactive gained two per cent as the activist fund Blackwells Capital called on the board to remove Chief Executive John Foley, saying his strategy had poorly situated the home fitness company.
Kohl’s jumped 33 per cent following reports activist funds had offered roughly US$9 billion (RM37 billion) to acquire the department store chain.
This week’s calendar includes Wednesday’s conclusion of the Fed’s two-day policy meeting after which Chair Jerome Powell is expected to offer further clues on the timing of interest rate hikes.
Investors are also looking ahead to a heavy week of earnings with reports from Apple, Boeing, Tesla and other major companies. — AFP
