NEW YORK, May 16 — US stocks were off to a downbeat start today following the rally in the prior session, as concerns about growth in the domestic and global economies continue.
Weak US and Chinese economic data added to the ongoing fears, amid a growing chorus of recession warnings.
About 20 minutes into the trading session, the Dow Jones Industrial Average was down 0.7 per cent to 31,970.03, while the broad-based S&P 500 fell 0.9 per cent to 3,987.6.
The tech-rich Nasdaq Composite Index dropped 1.3 per cent 11,652.63, eroding the big gains scored Friday.
“Concerns surrounding the global economic growth outlook continue to dampen sentiment,” Wells Fargo analysts said. “Investors are monitoring disappointing data out of China, along with some reduced gross domestic product (GDP) forecasts for the US and Europe.”
Shares have been under pressure for days due to fears about rising inflation, higher borrowing rates and a possible downturn, exacerbated by concerns about the impact of the war in Ukraine and the Covid-19 lockdowns in China on existing supply snarls.
Wells Fargo attributed the “relief rally” on Friday to “oversold” conditions in equities.
Among individual shares, McDonald’s fell one per cent after announcing plans to pull out of Russia after 30 years.
JetBlue Airways dropped two per cent after the low-cost carrier announced a hostile takeover bid for rival Spirit Airlines, which rejected a previous bid in favour of a merger with Frontier. Spirit shares jumped 8.4 per cent. — AFP