Wall Street opens lower after IMF cuts economic forecast

By AP News

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NEW YORK (AP) — Stocks are opening lower on Wall Street as markets received some more discouraging news on the global economy. The S&P 500 was down 0.7% in the early going Tuesday. The Nasdaq was down slightly more and the Dow Jones Industrial Average was down 0.2%. U.S. stocks are coming off four straight losses. Worries about a looming recession have been weighing heavily on markets, and there was little help from the International Monetary Fund’s latest forecast. The global lending agency cut its forecast for global growth next year to 2.7%, down from the 2.9% it estimated in July.

NEW YORK (AP) — Stocks are opening lower on Wall Street as markets received some more discouraging news on the global economy. The S&P 500 was down 0.7% in the early going Tuesday. The Nasdaq was down slightly more and the Dow Jones Industrial Average was down 0.2%. U.S. stocks are coming off four straight losses. Worries about a looming recession have been weighing heavily on markets, and there was little help from the International Monetary Fund’s latest forecast. The global lending agency cut its forecast for global growth next year to 2.7%, down from the 2.9% it estimated in July.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

TOKYO (AP) — Asian and European shares were mostly lower Tuesday as losses in the technology sector weighed on global benchmarks.

France's CAC 40 dipped 0.6% to 5,807.12. Germany's DAX lost 0.7% to 12,183.60. Britain's FTSE 100 dropped 1.2% to 6,878.65. The future for the Dow industrials was down 0.7% at 29,059.00. The contract for the S&P 500 lost 0.8% to 3,597.00.

Taiwan dropped 4.4% after reopening from a holiday in the first trading session since the U.S. imposed new limits on exports of semiconductors and chip-making equipment to China. TMSC, the world’s biggest chipmaker, plunged 8.3%.

Japan's Nikkei 225 declined 2.6% to 26,401.25. South Korea's Kospi lost 1.8% to 2,192.07. Both markets also were reopening after holidays on Monday.

Hong Kong's Hang Seng dropped 2.2% to 16,830.73.

The Shanghai Composite gained 0.2% to 2,979.79, while Australia’s S&P/ASX 200 lost 0.3% to 6,645.00.

“Japan and South Korean markets are catching up to previous global market losses, with their exposure to the tech sector spurring a greater extent of the sell-off as mirrored in Wall Street,” Yeap Jun Rong, a market strategist at IG in Singapore, said in a report.

In a bit of encouraging news, Japan reopened to generally unrestricted tourism on Tuesday after more than two years of COVID-19 restrictions. Pent-up travel spending could help lift the world's third largest economy as it grapples with slowing global growth and inflation.

But technology stocks have taken a hit from the announcement of tighter export controls on semiconductors and chip manufacturing equipment. The restrictions aim to limit China’s ability to get advanced computing chips, develop and maintain supercomputers, and make advanced semiconductors.

In China, technology shares were hit by renewed selling after steep losses on Monday. Chip equipment maker Naura Technology sank 10% and Hwatsing Technology dropped 12.2%.

Japan's Sony Group lost 4.1% while Renasas shed 5.7%.

Wall Street has been roiled by worries over stubbornly hot inflation and the Federal Reserve's plan to tame high prices by raising interest rates. The goal is to slow economic growth and cool both borrowing and spending to get inflation under control, but the plan risks sending the economy into a recession .

On Monday, the benchmark S&P 500 fell 0.7%, extending its losing streak to a fourth trading session. The Dow Jones Industrial Average lost 0.3% and the Nasdaq composite fell 1%. The Russell 2000 fell 0.6%.

Investors will potentially get a more detailed picture of the Fed's thinking on Wednesday when the central bank releases minutes from its latest policy meeting. That’s when the Fed made another extra-big interest rate increase of three-quarters of a percentage point.

The closely watched report on consumer prices will be released on Thursday and a report on retail sales is due Friday.

This week also brings the latest round of corporate earnings reports, which could provide a clearer picture of how high prices are impacting revenue and profits and what's expected for the rest of the year and even into 2023.

In energy trading, benchmark U.S. crude fell $1.84 to $89.29 a barrel in electronic trading on the New York Mercantile Exchange. U.S. crude oil dropped 1.6% Monday. Brent crude, the international pricing standard, lost $1.70 to $94.49 a barrel.

In currency trading, the U.S. dollar slipped to 145.65 Japanese yen from 145.75 yen. The euro cost 97.02 cents, down from 97.04 cents.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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Author: AP News

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Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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