New York’s Dow Jones Stock Exchange closed nearly 500 points lower on Monday (Nov. 28) as investors feared that protests against COVID-19 curbs in Chinese cities would hurt the economy and further intensify supply chain problems. more serious.
The Dow Jones Industrial Average closed at 33,849.46 points, down 497.57 points, or -1.45%, the S&P 500 closed at 3,963.94 points, down 62.18 points, or -1.54%, and the Nasdaq Index closed at 11,048,76 – 11,049,75 points. . 1.58%.
Chinese people are rioting to protest the government’s zero COVID policy. They gathered on the streets in cities including Shanghai, Beijing, Wuhan, Chengdu, Xi’an and Nanjing to express their displeasure that the government’s ongoing lockdown measures are hurting people’s lives. While some protesters demanded that President Xi Jinping resigns.
The protests that erupted across the country this time It happened after 10 people died in a high-rise building in Urumqi. The capital of Xinjiang on Thursday, November 24, with video footage shared on social media leading many people to believe that residents of such buildings could not escape the fire in time. as the building is on partial lockdown to prevent the spread of COVID-19
All 11 stocks comprising the S&P 500 ended in negative territory, led by the real estate sector shed 2.8% and the energy sector shed 2.74%.
Apple shares fell 2.63% following the report. Protests at the Foxconn factory Which is the manufacturer of the iPhone for the company Apple. This will result in iPhone Pro production dropping to 6 million units this year.
Victoria Fernandez, analyst at Crossmark Global Investments, said: “Currently, Apple is unable to produce iPhones to order. because factories in China are closing the production line The situation with Apple shows that events in one country can have an impact on other countries. This will exacerbate supply chain problems and have a negative impact on the global economy.”
Markets were also under pressure from Federal Reserve officials including St Louis Fed President James Bullard and New York Fed President John Williams. has encouraged the Fed to continue raising interest rates to bring inflation back to the Fed’s 2% target.
Blockchain stocks are falling After it was reported that BlockFi, a cryptocurrency lending company, declared bankruptcy yesterday. The company filed for Chapter 11 bankruptcy protection in the United States District Court in New Jersey. Coinbase shares fell 4 percent, Riot Blockchain shares fell 4.06 percent.
Amazon shares were up 0.58% after Adobe Analytics predicted online consumer spending on Cyber Monday rose 5.2% to $11.2 billion. This was higher than ever, with Cyber Monday being the day that Americans shop online most of the year. This is driven by the fact that various stores have reduced their prices to boost sales towards the end of the year.
Investors will be keeping an eye on Fed Chairman Jerome Powell, who is scheduled to deliver a speech on monetary and fiscal policy at the Brookings Institution on November 30 at 1:30 pm US time on December 1, Thai time. Powell shares his views on the direction of the US economy. including inflation and the labor market
Additionally, investors await important US economic data this week. These include third quarter 2022 gross domestic product (GDP) (2nd estimate), October job openings and labor turnover (JOLTS) figures, and the number of unemployment claims for the week
