The Dow Jones Industrial Average fell Monday, continuing an April market sell-off that has pushed the index lower for four straight weeks.
Wall Street is also bracing for a stacked week of earnings, including reports from major technology companies like Amazon and Apple.
The Dow fell about 400 points, or 1.2%. The S&P 500 retreated 1.4%. The Nasdaq Composite dipped 0.5%.
“Stocks are kicking off the week deeply in the red as all the anxiety and negativity from Thurs/Fri carried over the weekend,” wrote Adam Crisafulli of Vital Knowledge in a note to clients. “The dramatic shift in [central bank] tightening expectations last week remains a huge overhang, but China is quickly rising the top of the list of market fears as COVID shutdown concerns spread to Beijing.”
Fears of a global slowdown send oil prices lower. WTI crude fell more than 5% back below $100.
Energy shares retreated, comprising the worst-performing S&P 500 sector Monday. Chevron fell more than 3% and Exxon Mobil lost more than 5%.
The 10-year Treasury yield, which has undergone a rapid rise this year that has worried investors, dropped more than 12 basis points to below 2.8% (1 basis point equals 0.01%).
Some technology shares were a bright spot in the market, rising as interest rates fell. Google-parent Alphabet shares nearly 2% and Microsoft was marginally higher.
Investors are watching Twitter as well, which reportedly is re-examining Elon Musk’s takeover bid. The social media company is nearing a deal to sell itself to the billionaire investor, The New York Times reported, citing unnamed sources. Twitter shares were more than 3% higher.
Coca-Cola shares were marginally higher after the company reported better-than-expected quarterly earnings before the bell Monday.
About 160 companies in the S&P 500 are expected to report earnings this week, and all eyes will be on reports from mega-cap tech names, including Amazon, Apple, Alphabet, Meta Platforms and Microsoft.
“This week may easily be a fork in the road of equities. We have nearly a third of the S&P 500 and half of the Dow Jones set to report. Bottom-up drivers will either confirm or reject what the challenging macro backdrop has given us over the last three weeks,” MKM’s JC O’Hara said in a note.
After a late March comeback, stocks returned to their losing ways in April. The Dow is coming off its worst one-day performance since October 2020 on Friday, dropping more than 900 points and marking the Dow’s fourth straight weekly loss. For the week, the S&P 500 and the Nasdaq are fresh off three straight losing weeks.
The Nasdaq Composite is down about 10% for the month, while the S&P 500 and Dow are off by around 6% and 3% respectively. The S&P 500 is back in correction territory, down roughly 12% from its high. The Nasdaq is off by more than 21% from its record.