Here are your FOX Business Flash top headlines for March 14.
U.S. stocks are wavering between positive and negative territory early Tuesday morning.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 32945.24 | +1.05 | +0.00% |
| SP500 | S&P 500 | 4173.11 | -31.20 | -0.74% |
| I:COMP | NASDAQ COMPOSITE INDEX | 12581.220419 | -262.59 | -2.04% |
Stocks and oil prices tumbled Monday as investors assessed the impact of new Covid-19 outbreaks in China and awaited a likely interest-rate increase by the Federal Reserve later this week.
The technology-focused Nasdaq Composite dropped 262.59 points, or 2%, to 12581.22, its lowest level since December 2020, as China locked down the key manufacturing regions of Shenzhen and Changchun due to a fresh outbreak of COVID-19 cases in those cities.
FEDERAL RESERVE EXPECTED TO HIKE INTEREST RATES THIS WEEK, DESPITE UKRAINE VOLATILITY
The S&P 500, which has fallen for four of the five past weeks, declined 31.20 points, or 0.7%, to 4173.11.
The Dow Jones Industrial Average edged up 1.05 points to 32945.24, snapping a two-session losing streak.
U.S. stocks are wavering between positive and negative territory early Tuesday morning. (Allie Joseph/New York Stock Exchange via AP)
Shares of Apple fell 2.7% as the lockdown in China disrupted manufacturing by a key supplier. Other technology bellwethers also struggled. Amazon.com fell 2.5%; Alphabet, parent of Google, dropped 3%.
Investors have been spooked lately by the war in Ukraine and a rally in commodity prices sparked by the conflict, on top of the prospect of rising rates. They have pushed into perceived havens such as gold and bonds while selling stocks.
Oil prices have tumbled, taking some pressure off the inflation sweeping the globe, with a barrel of U.S. crude falling below $100 per barrel after touching $130 last week.
U.S. crude shed $4.14 to $98.87 per barrel in electronic trading on the New York Mercantile Exchange. It tumbled $6.32 to $103.01 on Monday.
Brent crude, the standard for pricing international oils, gave up $3.90 to $103.00 per barrel.
Uncertainty about whether the world economy may be heading for a toxic combination of stagnating growth and persistently high inflation has cast recoveries from the pandemic in question as Russia’s invasion of Ukraine caused prices for oil, wheat and other commodities produced in the region to soar.
Small company stocks also fell. The Russell 2000 index slid 1.9% to 1,941.72.
The pullback came as the yield on the 10-year Treasury touched its highest level since the summer of 2019.
The yield on the 10-year Treasury climbed to 2.16% from 2.00% late Friday after earlier touching its highest level since July 2019. The two-year yield, which moves more on expectations for Fed policy changes, rose to 1.86% from 1.75%.
Uncertainty about whether the world economy may be heading for a toxic combination of stagnating growth and persistently high inflation has cast recoveries from the pandemic in question as Russia’s invasion of Ukraine caused prices for oil, wheat and (Allie Joseph/New York Stock Exchange via AP / Associated Press)
The Fed faces the challenge of raising rates just quickly and high enough to bat down inflation without overdoing it and causing a recession
Meanwhile, Asian shares were mostly lower and oil prices fell Tuesday.
Markets remain jumbled as investors try to gauge various economic impacts from the war in Ukraine, upcoming rate hikes by central banks and new virus lockdowns in China. Tokyo rose while markets in China, Australia and South Korea fell.
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Stocks have fallen sharply in Hong Kong recently, sinking to near six-year lows after the neighboring city of Shenzhen was ordered into a shutdown to combat China’s worst COVID-19 outbreak in two years.
The Hang Seng index lost 2.4% early Tuesday to 19,068.49, while the Shanghai Composite gave up 2.1% to 3,157.14.
Tokyo’s Nikkei 225 rose 0.3% to 25,385.11, while the Kospi in Seoul gave up 0.6% to 2,630.34. Australia’s S&P/ASX 200 slid 0.6% to 7,108.80 and shares also fell in Taiwan and Bangkok.
In currency dealings, the dollar rose to 118.34 Japanese yen, its highest level in about six years, from 118.18 yen late Monday. The dollar tends to serve as a safe haven in times of crisis, and the prospect of higher interest rates enhances its allure to investors.
The weaker yen is a boon to Japanese export manufacturers as it makes their products relatively cheaper and more competitive in overseas markets. Toyota Motor Corp.’s shares gained 2.5% early Tuesday.
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The euro rose to $1.0979 from $1.0941.
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AP Business Writers Stan Choe, Alex Veiga and Damian J. Troise contributed.
