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US stocks pressured by China data, recession worries

2022-05-17 HKT 04:56
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  • The three major indices on Wall Street finished mostly lower on Monday. Photo: Shutterstock
    The three major indices on Wall Street finished mostly lower on Monday. Photo: Shutterstock
Wall Street stocks finished mostly lower on Monday following weak Chinese economic data that added to recession worries amid inflation and rising interest rates.

China's retail sales and factory output slumped in April to their lowest levels in around two years, official data showed, reflecting the toll from that country's restrictions due to Covid-19.

FHN Financial's Chris Low also cited gloomy comments from former Federal Reserve Chair Ben Bernanke who warned of possible "stagflation"-type economic conditions and told CNBC the Fed under current Chairman Jerome Powell had waited too long to address inflation.

"It's kind of a surprise the market isn't down more," Low said.

The Dow Jones eked out a 0.1 percent gain to 32,223.

The S&P 500 shed 0.4 percent to 4,008, while the Nasdaq tumbled 1.2 percent to 11,662.

Among individual companies McDonald's dipped 0.1 percent as it announced it would exit Russia in the wake of the Ukraine offensive, taking a one-time charge of US$1.2 billion to US$1.4 billion to write off the investment.

Spirit Airways Jumped 13.6 percent after JetBlue Airlines announced a hostile takeover bid for Spirit, which had rejected a previous offer in favour of a merger with Frontier. JetBlue Airways dropped 6.1 percent.

This week's calendar includes US retail sales data for April, as well as housing starts for the same period. Walmart and Home Depot are among the companies reporting results. (AFP)