US stocks close sharply lower as traders await tech earnings and Fed policy
After a weak start, U.S. stocks continued to slide through the end of Monday’s session as traders opted to lighten exposures ahead of a slew of tech company earnings and the Federal Reserve’s monetary policy decision. .
The major averages all ended significantly lower, with the tech-laden Nasdaq posting a steep loss.
The Dow Jones ended down 260.99 points or 0.77% at 33,717.09, the S&P 500 fell 52.79 points or 1.3% at 4,017.77, while the Nasdaq closed with a loss of 227.90 points or 1.96% at 11,393.81.
The Fed’s two-day meeting begins Tuesday. The central bank is expected to slow the pace of interest rate hikes to 25 basis points. Traders will pay close attention to the attached statement for clues on the prospects for further rate hikes.
Recent upbeat economic data has raised some optimism about the Fed’s ability to stage a soft landing, but also raised concerns about the need for the central bank to keep rates high for longer than expected. .
The Bank of England and the European Central Bank are also expected to announce their rate decisions this week. The BoE and the ECB are expected to raise their interest rates by 50 basis points.
Apple, Amazon and Alphabet lost 2%, 1.6% and 2.5% respectively.
Meta-platforms fell about 3%. Microsoft, Chevron, 3M, Walt Disney, United Health and Caterpillar also ended noticeably lower.
Verizon, Goldman Sachs, IBM and Merck closed on a high note.
In overseas trading, Asian stocks ended lower on Monday as investors anticipated a busy week of central bank announcements and earnings updates from U.S. tech heavyweights Amazon, Apple, Alphabet and Meta Platforms.
Chinese stocks made modest gains as traders returned to their offices after a week-long vacation.
European stocks closed broadly lower on Monday as investors focused on corporate earnings updates and anticipating upcoming central bank policy meetings.
The pan-European Stoxx 600 index ended down 0.17%. Germany’s DAX edged down 0.16% and France’s CAC 40 ended down 0.21%, while Britain’s FTSE 100 gained 0.25%.
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US stocks close sharply lower as traders await tech earnings and Fed policy
