Stock futures are trading lower to start the week
US stock futures traded lower on Monday. after another brutal week for stocks.
Major futures indices suggest a 0.1% drop in early trading on Wall Street.
The Dow Jones Industrial Average briefly hit a bear market on Friday before rebounding slightly from a 700-point decline. The average now sits at the lowest level since November 2020. This as the S&P 500 and Nasdaq Composite ended the second straight week of losses, falling back to June lows.
Oil prices fell for a second day on Monday on fears of lower fuel demand due to an expected global recession triggered by rising global interest rates and as a rising U.S. dollar limits the ability of non-dollar consumers to buy crude.
U.S. West Texas Intermediate (WTI) crude futures were trading around $77.00 a barrel.
Brent futures were trading around $85.00 a barrel.
Asian stocks fell and the pound fell further on Monday, reflecting pessimism about efforts by central banks around the world to rein in inflation.
Japan’s benchmark Nikkei 225 lost 2.6%, Hong Kong’s Hang Seng fell 0.4% and China’s Shanghai Composite lost 1.2%.
Wall Street ended last week with widespread selling, leaving the major indexes with their fifth loss in six weeks.
The S&P 500 fell 1.7% on Friday to 3,693.23, its fourth consecutive decline. The Dow Jones, which at one point was down more than 800 points, lost 486.27 points, or 1.6%, to close at 29,590.41. The Nasdaq fell 1.8% to 10,867.93.
The pound falls to its lowest level in four decades
The pound fell to its lowest level in four decades on Monday on speculation that the new government’s economic plan will stretch its finances to the limit.
The pound fell to $1.0349 to the US dollar early on Monday, but then rebounded to $1.0671, down 2.3%.
The euro also hit a fresh 20-year low against the dollar on simmering recession fears, as the energy crisis drags on into winter amid an escalating war in Ukraine.
The pound fell 3.61% on Friday.
Gasoline rises for sixth consecutive day
The average price of a gallon of regular gasoline in the United States is gaining ground.
Monday’s price rose to $3.725 from $3.417 a gallon on Sunday, according to AAA.
The price began to rise again last week, after falling for nearly 100 consecutive days during the summer driving season.
It’s been six straight days of increases that began Wednesday morning when the price hit $3.681 a gallon from $3.674 the previous day.
The average price per week was $3,678. A year ago it was $3,188.
Amazon will hold a sale in mid-October
Amazon will host another Prime Day-like shopping event in October.
The company is the latest major retailer to roll out holiday deals earlier this year to appeal to cautious consumers on tighter budgets.
The event would take place on October 11 and 12, according to the Associated Press.
The event will mark the first time that Amazon has held a major sales event twice a year and follows its annual Prime Day in July.
It signals Amazon’s recognition that it needs to provide more deals for cash-strapped consumers in what is expected to be a tough holiday shopping season for retailers.
Oil prices fall amid fears of recession
Oil prices fell for a second day on Monday on fears of lower fuel demand due to an expected global recession triggered by rising global interest rates and as a rising U.S. dollar limits the ability of non-dollar consumers to buy crude.
U.S. West Texas Intermediate (WTI) crude futures were trading around $77.00 a barrel.
Brent futures were trading around $85.00 a barrel.
Both contracts fell about 5% on Friday to their lowest level since January.
The dollar index, which measures the greenback against a basket of major currencies, hit its highest level in 20 years on Monday. A stronger greenback tends to reduce demand for dollar-denominated oil since buyers using other currencies have to spend more to buy crude.
Reuters contributed to this post.
Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin mostly traded higher on Monday morning
Bitcoin was trading around $18,000, after a week that saw it fall 3%.
For the month, the cryptocurrency was down over 6% and down over 59% year-to-date.
Ethereum was trading around $1,200, after a week in which it lost 3%.
Dogecoin was trading at 6 cents after a week in which it gained more than 6%.
