Stocks open sharply lower again on Wall Street on Tuesday, a day after a wild roller coaster ride that erased an intraday plunge. Big tech stocks like Apple led the losses. The swings come as traders try to gauge how a stubborn resurgence of inflation will affect the economy and how well the Federal Reserve will combat it by withdrawing its stimulus policies and raising interest rates. The Fed releases its latest policy update on Wednesday. Investors also fear the possibility of a conflict in Ukraine. The S&P 500 fell 1.6% and the Nasdaq 1.8%.
THIS IS A BREAKING NEWS UPDATE. AP’s previous story follows below.
TOKYO (AP) — European stocks opened higher Tuesday after a day of steep losses in Asia as markets waited to hear from Federal Reserve Chairman Jerome Powell after a two-day policy meeting that ends Wednesday. .
The possibility of a conflict between Russia and Ukraine and concerns over coronavirus outbreaks also added to the uncertainties.
France’s CAC 40 edged up 1.1% to 6,861.14 in early trading, while Germany’s DAX gained 0.6% to 15,100.95. Britain’s FTSE 100 rose 0.5% to 7,334.99. The Dow Jones Industrial Average future was down 1.1%, while the S&P 500 future fell 1.6%.
A late-night buying spree on Monday pushed the benchmark S&P 500 to a 0.3% gain after pulling it out of so-called corrective territory – down 10% or more from its recent Mountain peak.
The Fed meeting will provide an update on policymakers’ latest thinking on the economy and interest rates.
Some economists worry the Fed is moving too slowly to rein in inflation by raising rates that have been kept low for nearly two years to support pandemic-stricken markets and economies.
Others fear that the Fed will act too aggressively and risk triggering a recession without succeeding in calming inflation.
Meanwhile, tensions have soared between Russia and the West over fears that Moscow is planning to invade Ukraine, with NATO outlining potential deployments of troops and ships.
The Pentagon has ordered 8,500 troops to deploy to Europe as part of a NATO “response force” to a military intervention in Ukraine. President Joe Biden consulted with key European leaders, stressing US solidarity with its allies there.
Asian stocks fell as Japan formalized a government plan to expand areas where pandemic restrictions are advised to help curb the spread of COVID-19. This will again put a damper on business activity and travel.
Shares of Toyota Motor Corp. fell nearly 1.8% after Japan’s top automaker said further adjustments to its production in Japan were needed due to a shortage of computer chips due to disruptions from coronavirus restrictions and infections COVID-19. Toyota has apologized for making customers wait for its products.
Japan’s benchmark Nikkei 225 slipped 1.7% to end at 27,131.34. Australia’s S&P/ASX 200 fell 2.5% to 6,961.60. The South Korean Kospi fell 2.6% to 2,720.39. Hong Kong’s Hang Seng fell 1.7% to 24,243.61, while the Shanghai Composite fell 2.6% to 3,433.06.
In energy trading, benchmark U.S. crude added $1.00 to $84.31 a barrel in electronic trading on the New York Mercantile Exchange. It fell from $1.83 to $85.31 on Monday.
Brent crude, the basis of the international oil price, rose $1.10 to $87.37 a barrel.
In currency trading, the US dollar fell from 113.96 yen to 114.14 Japanese yen. The euro traded at $1.1284, down from $1.1326.