US stocks fell in early trading as concern over an economic slowdown weighed on risk sentiment. Treasuries declined, sending yields higher across the curve.
The S&P 500 Index dropped for a third day, after the benchmark’s biggest selloff in a month Wednesday. The tech-heavy Nasdaq 100 fell as much as 1.1%. Treasuries retreated with the 10-year yield up 3 basis points, and the euro traded firmer after the head of the European Central Bank reaffirmed her aggressive stance. The dollar weakened.
On the corporate front, Procter & Gamble Co. slid after reporting shrinking sales volume. Alcoa Corp. fell after saying aluminum shipments will be weaker than anticipated this year. Philip Morris International Inc. rose after Jefferies LLC upgraded its view of the stock.
A rally driven by optimism over China’s economic reopening has fizzled as recent data signal a slowdown. Reports from the US this week showed declines in consumer demand and business investment, boosting the probability of a recession in the world’s largest economy. That, however, didn’t deter Federal Reserve officials from reaffirming the need for tighter monetary policy.
Data was mixed Thursday, with new US home construction declined for a fourth-straight month in December. Applications for US unemployment benefits unexpectedly fell last week, sliding to the lowest level since September and underscoring a strong jobs market.
In the US, Wednesday’s releases showed producer prices and retail sales fell, while business equipment production slumped. A decline in factory output wrapped up the weakest quarter for manufacturing since the onset of the pandemic. Even after such a string of poor data, Fed officials repeated calls for more interest-rate hikes.
Key events this week:
Here are some of the main market moves:
Stocks
Currencies
Cryptocurrencies
Bonds
Commodities
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