NEW YORK: Wall Street stocks finished lower on Monday (Nov 21) despite a surge in Disney shares as markets fretted over the implications of China’s latest Covid-19 wave.
The Dow Jones Industrial Average fell 45.41 points, or 0.13%, to 33,700.28, the S&P 500 lost 15.4 points, or 0.39%, to 3,949.94 and the Nasdaq Composite dropped 121.55 points, or 1.09%, to 11,024.51.
China has reported its first coronavirus death in six months as country officials contend with another uptick in infections.
Beijing said on Monday it would shut businesses and schools in hard-hit districts and tighten rules for entering the city, as infections ticked higher.
“There is this fear that China might reinstitute some of the Covid restrictions that they’ve just purportedly started to lift,” said Carol Schleif, deputy chief investment officer at BMO Family Office.
Some of Beijing’s largest shopping malls were closed on Sunday, while others reduced opening hours or banned table service at restaurants as officials urged residents to avoid non-essential travel.
“There is a bit of a risk off sentiment today (Monday),” said Angelo Kourkafas of Edward Jones.
“There’s no US data. But there are some headlines about the worsening Covid-19 trends in China, which is adding to global growth concerns,” he added.
Investors expect subdued trading during the week, which includes the Thanksgiving holiday on Thursday (Nov 24). Ahead of that, investors will digest minutes of the latest Federal Reserve meeting and a bevy of economic data, including durable goods orders for October.
This is traditionally a “quiet” stretch for markets, Kourkafas said.
Among individual companies, Disney jumped 6.3% as it ousted Bob Chapek as chief executive and said it would bring back longtime former chief Bob Iger as it struggles to boost the financial performance of its streaming business. – AFP, Reuters
