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U.S. Stocks Open Lower on Worries About Economic Slowdown in China

Published 15/08/2022, 15:04
© Reuters.
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By Liz Moyer

Investing.com -- U.S. stocks opened lower on Monday ahead of a big week of earnings from major retailers and after weak economic data out of China raised concerns about an economic slowdown.

At 09:50 ET (13:50 GMT), the Dow Jones Industrial Average was down 36 points, or 0.1%, while the S&P 500 was down 0.3% and the NASDAQ Composite was down 0.2%.

China’s central bank cut lending rates unexpectedly. The second-biggest economy is struggling with factory and retail activity slowed by Covid-19 shutdowns.

In the U.S., reports from retailers including Walmart Inc (NYSE:WMT) and Target Corporation (NYSE:TGT) will help investors measure of the strength of the consumer sector after an unexpectedly strong labor report for July and an inflation reading that showed prices cooling from June.

Officials from the Federal Reserve will meet later this month at their annual conference in Jackson Hole, Wyo., and then again in September to decide the direction of interest rates after raising their benchmark rate 0.75 percentage points in both June and July.

Before that, the Fed will publish the minutes of its July meeting this week.

Exxon Mobil Corp (NYSE:XOM) shares fell more than 4% as oil slumped. Other oil company stocks were also falling, including Chevron Corp (NYSE:CVX), down 3.5%.

Crude was crumbling. Crude Oil WTI Futures fell 5%, to $87.56 a barrel, while Brent crude was down 4.6% to $93.60 a barrel. Gold Futures fell 1.2% to $1792.

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