U.S. stocks dipped Monday, pointing to a continuation of an April market sell-off that has pushed the Dow Jones Industrial Average lower for four-straight weeks.
Wall Street is also bracing for a stacked week of earnings, including reports from major technology companies like Amazon and Apple.
The Dow lost about 160 points, or 0.4%. The S&P 500 dipped 0.7%. The Nasdaq Composite lost 0.7%.
The blue-chip average is coming off its worst one-day performance since October 2020 on Friday, dropping more than 900 points and marking the Dow’s fourth straight weekly loss. For the week, the S&P 500 and the Nasdaq are fresh off three straight losing weeks.
“Stocks are kicking off the week deeply in the red as all the anxiety and negativity from Thurs/Fri carried over the weekend,” wrote Adam Crisafulli of Vital Knowledge in a note to clients. “The dramatic shift in [central bank] tightening expectations last week remains a huge overhang, but China is quickly rising the top of the list of market fears as COVID shutdown concerns spread to Beijing.”
After a late March comeback, stocks returned to their losing ways in April. The Nasdaq Composite is down nearly 10% for the month while the S&P 500 and Dow are off by 5.7% and 2.5% respectively. The S&P 500 is back in correction territory, down 11% from its high. The Nasdaq is off by more than 20% from its record.
About 160 companies in the S&P 500 are expected to report earnings this week, and all eyes will be on reports from mega-cap tech names, including Amazon, Apple, Google-parent Alphabet, Meta Platforms and Microsoft.
“This week may easily be a fork in the road of equities. We have nearly a third of the S&P 500 and half of the Dow Jones set to report. Bottom-up drivers will either confirm or reject what the challenging macro backdrop has given us over the last three weeks,” MKM’s JC O’Hara said in a note.
Coca-Cola reported better-than-expected quarterly earnings before the bell Monday and shares rose about 1.5% in the premarket.
Investors are watching Twitter as well, which reportedly is re-examining Elon Musk’s takeover bid. The social media company is nearing a deal to sell itself to the billionaire investor, The New York Times reported, citing unnamed sources. Twitter shares were more than 4% higher in the premarket.
WTI Crude oil fell more than 5% back below $100 on fears of a global slowdown. The 10-year Treasury yield, which has undergone a rapid rise this year that has worried investors, dropped nearly 10 basis points to the 2.8% level (1 basis point equals 0.01%).
Energy and commodity-related stocks dropped in premarket trading as oil prices pulled back.