NEW YORK (AP) — Wall Street reported modest declines at the open of Monday as investors continue to weigh soaring energy costs and prospects for U.S. interest rate hikes.
Dow Jones futures fell 0.1% and the same for the S&P 500 lost 0.3%. Global equities were mixed and oil prices fell.
Last week, U.S. benchmarks recorded their sixth straight weekly decline, the longest such streak since 2011.
Some analysts worry that if the US Federal Reserve raises interest rates too quickly or too much, it could trigger a recession. A slowdown in the US would almost certainly hurt the Asian region, which exports and manufactures goods for the US economy.
The Fed said it would continue raising interest rates to temper rising inflation. The benchmark short-term interest rate was at an all-time high near zero for much of the coronavirus pandemic.
“Many others had spotted recession risk in 2024, but we were aggressive early on in our forecast of a possible US recession this year,” said Clifford Bennett, chief economist at ACY Securities.
In Europe, the French CAC 40 fell 0.4% at noon, while the German DAX lost 0.7%. Britain’s FTSE 100 was essentially flat.
Japan’s benchmark Nikkei 225 gained 0.5% to end at 26,547.05.
A Bank of Japan report said wholesale inflation rose 10% in April from a year earlier, the highest since comparable records began in 1981. Consumer prices in Japan n haven’t grown at such a rapid pace in recent months. April’s consumer price data is expected to be released later this week.
In other regional trade, Australia’s S&P/ASX 200 edged up 0.3% to 7,093.00. The South Korean Kospi fell 0.3% to 2,596.58. Hong Kong’s Hang Seng recouped its morning losses to rise 0.3% to 19,950.21, while the Shanghai Composite lost 0.3% to 3,073.75.
Even though concerns about interest rate hikes have eased somewhat, investors are still watching closely what Fed Chairman Jerome Powell might say next, said Stephen Innes, managing partner at SPI Asset Management. .
“That doesn’t mean the bear market is over, especially with the recession on everyone’s mind,” Innes said.
The next set of corporate results could provide some insight into how inflation affects businesses and consumers. Several major US retailers are reporting results later this week, including Walmart, Target and Home Depot.
Markets have slumped since late March as traders fear the Fed will fail in its delicate mission to slow the economy to tame the highest inflation in four decades without triggering a recession.
Shares of Spirit Airlines jumped 13% in premarket trading after news that JetBlue was turning hostile in its bid for the low-cost airline. JetBlue will go directly to Spirit shareholders asking them to reject a proposed $2.9 billion acquisition by Frontier Airlines. Spirit twice rejected JetBlue’s $3.6 billion offer.
In energy trading, benchmark U.S. crude fell $1.16 to $109.33 a barrel in electronic trading on the New York Mercantile Exchange. It jumped from $4.36 to $110.49 on Friday. Brent, the international standard, fell $1.30 to $110.25 a barrel.
In currency trading, the US dollar rose slightly to 129.46 Japanese yen from 129.28 yen. The Euro traded at $1.0422, down from $1.0402 previously.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.