· Stocks fell on Friday and posted weekly losses as investors digested a slew of corporate earnings reports and remarks from a top Federal Reserve official.
The S&P 500 closed 0.6% lower at 2,976.61 while the Nasdaq Composite slid 0.7% to 8,146.49. The Dow Jones Industrial Average fell 68.77 points, or 0.3%, to close at 27,154.20 after rising more than 100 points earlier in the session. The indexes lost most of their earlier gains after Iran said it captured a British oil tanker.
For the week, the S&P 500 and Nasdaq fell more than 1% each, notching their biggest weekly loss since late May. The Dow lost 0.6%. The indexes’ losses come after reaching all-time highs earlier this week.
Stocks eked out small gains in the previous session after New York Federal Reserve President John Williams said the central bank needed to “act quickly” when the economy was slowing and rates were low, adding in a speech that it is “better to take preventative measures than wait for disaster to unfold.”
Those comments led traders to price in a greater possibility that the Fed would cut interest rates by 50 basis points at the end of the month.
· Stocks in Asia traded lower on Monday morning, as investors await the start of a Nasdaq-style technology board on the Shanghai Stock Exchange.
The Nikkei 225 in Japan declined 0.36% in morning trade, with shares of convenience store chain Familymart dropping more than 2%. The Topix index also fell 0.41%.
Japanese Prime Minister Shinzo Abe’s ruling coalition won a majority in the country’s upper house of Parliament in elections on Sunday. That came as Japan remains embroiled in a trade dispute with South Korea.
“I hope with the election out of the way, Abe feels the pressure is off him to take a hard line,” Richard Martin, managing director at IMA Asia, told CNBC’s “Squawk Box” on Monday.
“There is scope to come back to the table and renegotiate,” Martin said. “Without that election pressure on him, i hope he can do it.”
South Korea’s Kospi traded largely flat as shares of chipmaker SK Hynix surged 2.34%. Over in Australia, the S&P/ASX 200 shed 0.17%.
The STAR market will start trading in Shanghai on Monday, when the first batch of 25 companies make their public debut later today. The IPOs were 1,695 times oversubscribed among retail investors, Reuters reported last Wednesday, setting the stage for a scramble in the secondary market when trading begins.
Reference: CNBC
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