© Stocksak. FILE PHOTO – Traders work on the New York Stock Exchange (NYSE), in New York City, U.S.A, October 17, 2022. REUTERS/Brendan McDermid
(Stocksak – U.S. Stock Index Futures fell Monday due to concerns about China’s economic outlook. This was after sharp gains in Wall Street last week, driven by better than expected earnings and hopes of a more aggressive Federal Reserve.
U.S.-listed shares in Chinese companies such as Alibaba (NYSE:] Group Holding Ltd (NASDAQ:), and Baidu Inc(NASDAQ:) suffered losses in premarket trading. They were down 12.5% (and 11.7% respectively) as President Xi Jinping’s newly appointed leadership team raised concerns that growth would be sacrificed to ideology-driven policies.
In the meantime, delayed data on gross national product showed that the Chinese economy grew at a higher-than-expected 3.9%, but retail sales suffered a disappointing 2.5% increase.
Tesla (NASDAQ:), fell 3.5% following a reduction in starter prices for its Model 3 or Model Y electric-cars in China. This reversed a trend of rising prices across the industry, amid signs of softening auto demand in the largest market in the world.
Wall Street jumped Friday after a report that the Fed would likely discuss a smaller interest-rate hike in December. This raised hopes that the central bank might be poised for a less aggressive policy.
All three major indexes posted their largest weekly percentage gains in the last four months, supported by better than expected third-quarter earnings.
Refinitiv estimates show that 74.7% of the 99 companies reporting quarterly earnings as of Friday outperformed analysts’ expectations. The long-term average of 66.2% is
Now, the focus shifts to this week’s reports from large tech and growth companies. Google-parent Alphabet Inc (NASDAQ 🙂 will report on Tuesday. Next, Meta Platforms Inc, Facebook-parent Meta Platforms Inc (NASDAQ :), and Apple Inc (NASDAQ 🙂 and Amazon.com Inc. (NASDAQ 🙂 will report on Wednesday.
At 4:43 AM. ET were down 197 points or 0.63% and down 26.5 points or 0.7% respectively. They were also down 95 points or 0.84%.
Investors were waiting for S&P Global (NYSE:)’s flash survey on manufacturing and services sector activity in October for clues on the health of the U.S. economy amid rapidly rising interest rates.