Dow drops 400 points as week begins as Wall Street rally wanes

10-year yield rises again above 3% for the first time in a month

Federal Reserve Chairman Jerome Powell speaks at the annual Wyoming conference Friday morning at 10 a.m. ET.

Michael Schumacher of Wells Fargo said the market expects Powell to speak firmly about raising interest rates, following recent hawkish comments from other Fed officials. Last week, St. Louis Fed President James Bullard, for example, said he would like to see a third consecutive rate hike of 0.75 percentage point in September.

“I’m not convinced he’s going to stick out the claws and look tough. I think the fear is that he’s going to be tough.” Schumacher says.

– Patty Doom

Ford is down 5% after a $1.7 billion ruling

Ford F-150 Lightning at the 2022 New York Auto Show.

Scott Millian | CNBC

Ford Motor shares sank 5.4% after a jury Friday ruled against the automaker in a case focused on roof strength in one of its old pickup trucks.

A Georgia jury last week ordered the company to pay $1.7 billion to the families of two people killed in a 2014 accident involving an F-250 pickup truck.

Technology stocks fall on interest rate hike fears

Technology stocks sank Monday as investors feared more violent hikes from the Federal Reserve and investors looked forward to comments from Federal Reserve Chairman Jerome Powell later this week in Wyoming.

Big tech names appleAnd the AmazonAnd the Alphat decreased by 1.7%, 3.3% and 2.4%, respectively, while Netflix Sink more than 5%. Semiconductor stocks were also hit with nvidiaAnd the micron And the Advanced Micro Devices down more than 2% each.

Popular software names also received great success, earning shares Atlassian And the datadog Each drop by more than 4%.

– Samantha Sobin

Bitcoin briefly drops below $21,000

A representation of the virtual currency Bitcoin is shown in front of a stock chart in this illustration taken on May 19, 2021.

Dado Rovich | Reuters

The value of the Bitcoin It fell below $21,000 at around 4:15 a.m. ET on Monday. The cryptocurrency soared to $21,297 by 9:46 a.m., down just 1%, according to CoinMetrics. Ethereum It also fell Monday morning to $1,571.35, down more than 3%.

Bitcoin, which is traded 24 hours a day, also fell over the weekend.

Cryptocurrency-related stocks also faltered. shares microstrategy And the Blockchain riot Slither more than 1%.

The drop in the virtual currency comes at a time when the summer rush on Wall Street is starting to fade. The three major indices started Monday’s session lower, and all three indices ended the previous week with losses.

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­Darla Mercado, Nick Wells

AMC drops more than 30% at the open

The AMC Theater is photographed in Times Square in the Manhattan borough of New York City, New York, June 2, 2021.

Carlo Allegri | Reuters

AMC shares were down about 38% In the early minutes of trading Monday after rival theater chain Cineworld said it was considering filing for bankruptcy.

AMC’s new preferred stock class called “APE” units is also set to begin trading on Monday. The shares were distributed as dividends to existing shareholders and It could be a tool for AMC to raise money in the future.

Since the APE dividend is similar to a stock split, the move could pressure AMC’s common stock this morning.

– Jesse Pound

Stocks open lower on Monday

Stocks opened lower on Monday as the summer rally waned ahead of the Federal Reserve’s Jackson Hole seminar. The Dow Jones Industrial Average fell 376 points, or 1.12%. The S&P 500 and Nasdaq Composite are down 1.29% and 1.42%, respectively.

– Sarah Min

VIX at its highest level since August 3

A measure of stock volatility called VIX rose to its highest level since August 3.

The Cboe . Volatility Index It rose 2.6 points to 23.16 on Monday, although it is still far from its recent high when it rose above 30 in June.

– Sarah Min

Wolf Research says Powell will be “significantly tougher” at Jackson Hole

Jerome Powell in Jackson Hole, Wyoming, August 24, 2018.

David A. Grosjean | CNBC

Federal Reserve Chairman Jerome Powell is likely to take a tough stance against inflation in his Jackson Hole speech on Friday, according to Wolfe Research.

“We expect Powell to appear more hawkish at Jackson Hole,” Chris Sinek of Wolfe Research wrote in a note on Monday.

“As we discussed at length previously, we believe the Fed will have to raise the Fed funds rate to 4.5%+ to put inflation on a sustainable path back toward the FOMC’s 2% long-term goal,” he added.

The research firm said the central bank is “behind the curve,” and outlined reasons it should not buy in the event of a rally, including slowing global growth and inflated earnings expectations.

– Sarah Min

AMC shares plunge as Cineworld files for bankruptcy

Indicates sudden increases in Amazon’s report

Signify Health shares rose nearly 38% in Monday’s pre-market trading after a The Wall Street Journal report By saying that Amazon is among the many companies that are bidding for the healthcare company.

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The tech giant, along with CVS Health and UnitedHealth Group, is competing in an auction that would value Signify at more than $8 billion, according to the report, citing people familiar with the matter.

Amazon shares fell 2% in trading Monday.

It is said that Buffett will not take over the entire Occidental Corporation

Warren Buffett

Jerry Miller | CNBC

Time to sell Netflix, says CFRA

Netflix It has rebounded sharply since mid-July, but the good times for broadcast inventory won’t last long, according to the CFRA.

Analyst Kenneth Lyon downgraded Netflix’s sale-for-sale rating, noting that: “The main incentive for NFLX – introducing new ad-paying subscription plans – may not be visible until 2023.”

Netflix shares fell 2% in the primary market.

CNBC Pro subscribers can read a file The full story is here.

—Fred Imbert, Carmen Renick

Euro slips back into dollar parity

Picture of euro banknotes being counted.

Leonard Weger | Reuters

The euro It briefly fell below par with the US dollar on Monday for the first time since mid-July, as recession fears in the euro zone resurfaced.

As of 9:15 AM London time, the common currency has partially recovered and is trading at exactly $1.

– Elliot Smith

European markets drop as interest rate hike fears resurface

European markets fell on Monday on fears of more aggressive rate hikes from the United States Federal Reserve and the European Central Bank He returned to the fore.

pan europe Stokes 600 It was down 1.2% mid-morning in London, with autos down 2.9% to lead losses as all major sectors and exchanges traded in negative territory.

Risk sentiment was dampened by upbeat signals from European Central Bank policy makers, with Bundesbank President Joachim Nagel telling a German newspaper that the ECB should continue to raise interest rates even as recession risks in Germany grow.

The minutes of the European Central Bank’s latest policy meeting will be published on Thursday, while investors will pay close attention to Eurozone PMIs on Tuesday.

China’s central bank cuts lending rates

The The People’s Bank of China lowered the benchmark one-year lending rate by 5 basis points and priced for five years by 15 basis points, according to an online statement.

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This brings the one-year loan prime rate to 3.65% and the five-year LPR to 4.3%.

Analysts polled by Reuters expected a 10 basis point cut from the one-year LPR, and half of respondents expected the five-year rate to be cut by 15 basis points.

– Abigail Ng

CNBC Pro: How to Reduce Risk in Your Portfolio Right Now, According to the Pros

Stocks have been volatile this year, as a combination of recession fears, inflationary pressure and other macro risks have roiled markets.

Here are three ways investors can adjust their portfolios to reduce their risk or mitigate losses, according to Goldman Sachs, Wells Fargo, and others.

Professional subscribers can Read more here.

– Weezin Tan

CNBC Pro: JPMorgan predicts when the rally in growth stocks will end

Investors have flocked to growing stocks lately, but as recession fears mount, market watchers are deciding whether to switch to safer bets instead.

However, JPMorgan believes that the rally still has more to do, and has identified several indicators to watch when considering a rotation on developing stocks.

Professional subscribers can Read the story here.

– Xavier Ong

Earning season closes

Investors are wrapping up earnings season with only a few dozen companies in the S&P 500 yet to take off. Of the 95% of companies in the broader market index that reported earnings, 75% beat expectations, according to FactSet.

– Sarah Min

What do you expect from Paul Jackson Hole’s speech?

Federal Reserve Chairman Jerome Powell is expected to speak at the central bank’s annual symposium in Jackson Hole, Wyoming this week, and shed some light on the pace of future rate hikes.

Powell may offer hawkish comments from Fed officials who recently reiterated their commitment to fighting inflation, even as investors enjoyed a summer rally in part due to the Fed’s less aggressive outlook.

However, St. Louis Fed President James Bullard said in an interview last week with The Wall Street Journal He is considering another 0.75 percentage point rate hike at the September meeting.

Check out CNBC Pro for More on what to expect from the Federal Reserve Chairman.

– Sarah Min

Futures contracts open lower

Futures opened lower on Sunday night. Dow Jones Industrial Average futures were down 94 points, or 0.28%. S&P 500 and Nasdaq 100 futures declined 0.36% and 0.69%, respectively.

– Sarah Min

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