After Volatile Week, Markets Dip Some More

But losses are relatively modest
By Newser Editors and Wire Services
Posted Oct 10, 2022 3:25 PM CDT
After Volatile Week, Markets Dip Some More
File photo of traders on the floor at the New York Stock Exchange.   (AP Photo/Seth Wenig)

Stocks closed lower Monday on Wall Street, ahead of the beginning of the corporate earnings reporting season, per the AP. The week should provide insight into how high inflation and rising interest rates have been affecting US companies. The S&P 500 fell 27 points, or 0.8%, to 3,612; the Dow Jones Industrial Average fell 93 points, or 0.3%, to 29,202; and the Nasdaq dropped 110 points, or 1%, to 10,542. US bond trading was closed. Also of note: A much anticipated monthly report on consumer price inflation is coming up Thursday.

Major indexes are coming off a volatile week when they notched gains because of an early two-day rally that shielded stocks from subsequent weak days. On Monday, technology stocks were the biggest weights on the market. Makers of semiconductors and chip manufacturing equipment also suffered heavy selling after the US government tightened export controls to limit China's ability to get advanced computing chips, develop and maintain supercomputers, and make advanced semiconductors. Nvidia fell 3.2%.
Energy stocks fell as the price of US crude oil dropped 1.6%. Occidental Petroleum slid 5.6%.

Investors will potentially get a more detailed picture of the Fed's thinking on Wednesday when the central bank releases minutes of its latest policy meeting. That's when the Fed made another extra-big interest rate increase of three-quarters of a percentage point. "Nobody's arguing about whether inflation is falling, its simply the slope of the slide," said David Kelly, chief global strategist at JPMorgan Funds. "The inflation battle is being won and the problem is the recession battle may be getting lost unnecessarily."

(More stock market stories.)

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