NEW YORK (AP) — U.S. markets fell ahead of the opening bell ahead of quarterly earnings reports from a slew of big tech companies over the next few days.
S&P 500 and Dow Jones futures both fell 0.4% in after-hours trading after a late rally on Monday that spilled over into most global markets.
Stocks rose on Tuesday in Europe after closing mostly higher in Asia, although Chinese stocks slipped on renewed concerns about pandemic lockdowns and their potential effect on the economy there.
The British FTSE 100 gained 1% at midday, while the German DAX rose 1.1% and the CAC 40 in Paris 1.2%.
Microsoft and Google parent Alphabet release quarterly numbers on Tuesday. Meta, formerly Facebook, reports Wednesday and Amazon and Twitter report Thursday.
Big tech and other high-growth stocks have lagged the market recently as the Federal Reserve signals that it will aggressively raise its benchmark interest rate to fight inflation. The higher rates hurt a wide range of investments, especially stocks considered the most expensive.
As they are among the largest companies by market value, their movements have the most influence on the S&P 500.
US markets are also pressuring reports from China. Beijing is imposing mass testing and shutting down access to certain neighborhoods as the Chinese capital seeks to contain a new outbreak of COVID-19. It follows lockdowns in Shanghai and dozens of other cities that could further squeeze the world’s second-largest economy and add to already scrambled supply chains.
General Electric said Tuesday it expects to hit the bottom of its full-year guidance and warned of continued supply chain disruptions and “uncertainty in China due to recent impacts from the COVID-19”.
The latest wave of outbreaks comes as China’s economy slows in part due to regulatory crackdowns on tech companies like Alibaba and efforts to reduce high levels of debt in the real estate sector.
Expectations that the economy, a big consumer of all commodities, could slow further hit prices for nickel, copper, aluminum and zinc, which fell between 3% and 5% on Monday.
The Shanghai Composite Index fell 1.4% to 2886.43, giving up early gains. On Monday, it fell 5.1%.
Hong Kong’s Hang Seng, which lost 3.7% on Monday, closed up 0.3% at 19,934.71.
The Kospi in Seoul gained 0.4% to 2,668.31 after the government announced that South Korea’s economy grew at an annual rate of 3.1% in the first quarter of the year, up from 0.7% compared to the previous quarter.
In Tokyo, the Nikkei 225 rose 0.4% to 26,700.11. The Indian Sensex gained 1% to 57,149.41.
In Australia, which is heavily dependent on resource exports to China, the S&P/ASX 200 fell 2.1% to 7,318.00.
WE. benchmark oil recovered 77 cents, rising to $99.31 a barrel in electronic trading on the New York Mercantile Exchange. It lost $3.53 to $98.54 on Monday.
Brent crude, the international oil pricing standard, gained 91 cents to $103.07 a barrel.
The dollar slipped to 127.96 Japanese yen from 128.14 yen on Monday night. The euro fell to $1.0672 from $1.0713.
Universal Health Services fell more than 12% before market after falling short of Wall Street profit targets in the first quarter. Glass and ceramics maker Corning jumped more than 8% after posting strong first-quarter sales and profits.
On Monday, the S&P 500 climbed 0.6% after erasing an early loss of 1.7%. The rally was led by shares of internet-related companies, including Twitter, which jumped 5.7% after agreeing to let Tesla CEO and tweeter extraordinaire Elon Musk buy it.
The Dow Jones industrial average rose 0.7% on Monday, while the Nasdaq composite rebounded 1.3%.
Economists and investors fear that the US economy could slow sharply or even fall into recession due to the sharp interest rate hikes the Fed is expected to impose.
Besides their bottom line, investors are also looking for a better view of how big companies in technology, manufacturing and retail are handling rising inflation and supply chain issues. .
Wall Street receives key economic data this week. The Conference Board will release its consumer confidence measure for April on Tuesday, and the Commerce Department will release its first-quarter gross domestic product report on Thursday.
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