Wall Street Opens Lower Due to Weak Chinese Economy Data
Stock markets in New York opened lower on Monday, mainly under pressure from disappointing macroeconomic data from China. This took some distance from the new record levels set on Friday by the Dow-Jones index and the broad S&P 500.
Investors on Wall Street also processed the news about the takeover of Afghanistan by the Taliban.
Shortly after opening, the Dow was down 0.6 percent at 35,300 points, and the S&P 500 fell 0.4 percent to 4,450 points. The technology gauge Nasdaq also fell 0.4 percent, to 14,765 points.
Disappointing data on Chinese manufacturing and retail sales fueled concerns about slowing growth in the world’s second-largest economy. On top of that, there was uncertainty about the advance of the Delta variant of the coronavirus, which could undermine the economic recovery.
The oil sector on Wall Street was down due to the drop in oil prices on the back of economic concerns. Major carriers such as ExxonMobil, Chevron and ConocoPhillips were cut by up to 2 percent, while oil services companies such as Halliburton and Schlumberger were up to almost 2 percent. Steel and aluminium producers also struggled. For example, US Steel and Nucor fell to more than 4 percent, and Alcoa lost 5 percent. Miner Freeport-McMoRan fell 4.5 percent.
The tourism and travel industry also saw price losses due to concerns about the impact of the Delta variant. Cruise lines Carnival, Norwegian Cruise Line and Royal Caribbean fell to more than 2 percent. Delta Air Lines, American Airlines and United Airlines were up to 2 percent in the red.
Tesla was down nearly 2 percent. US authorities have launched an investigation into the safety of Tesla’s autopilot after a series of collisions. In addition, supervisor NHTSA announced that it would further study the driver assistance system of the electric car maker.