The pounding continued for stocks early Monday, as volatility in commodity markets and uncertainty about the future of
policy bolstered the bears.
Index futures recently showed the
trading 4 points below fair value, while the Nasdaq 100 was set for an 8-point slide. The 10-year Treasury bond rose 7/32 in price to yield 5.17%, while the dollar firmed against the yen and euro.
Steep dollar declines and rising interest rates sparked a two-day hammering for stocks starting last Thursday. Over the previous two sessions, the
Dow Jones Industrial Average
has fallen 262 points, or 2.3%, to 11,381, while the S&P 500 is off 32 points, or 2.5%, and the
has lost 77 points, or 3.4%.
The Dow, which closed Wednesday to within 80 points of its all-time high, remains up 6.3% in the year to date, while the S&P 500 is up 3.4%. The Nasdaq, where last week's selling was sparked by weak quarters at
, is up 1.7% since the start of January.
Early Monday, gold futures fell $21.80, or 3.1%, to $690 an ounce, after losing more than $8 on Friday. Copper was also sharply lower, losing 5.5%. In electronic Nymex trading, crude for June delivery was recently down $1.56, or 2.2%, to $70.48 a barrel, while gasoline lost more than 5 cents to $2.13 a gallon.
A selloff in commodity-related shares paced Friday's declines in the broader market, with miners
losing 2.5% or more. The Amex Gold Bugs index tumbled 4.8% on Friday.
Banks and brokerages also felt pain last week as investors fretted about the Fed's next move.
all lost about 5% over the five sessions.
Overseas markets were lower Monday. London's FTSE 100 was recently down 1.4% to 5830 while Germany's Xetra DAX fell 1.4% to 5834. In Asia, Japan's Nikkei fell 0.7% overnight to 16,487, while Hong Kong's Hang Seng plunged 2.4% t6o 16,495.
Monday's economic calendar is relatively empty, with the main event being a report on capital inflows into U.S. assets. On Tuesday, the inflation zeitgeist gets a major airing when the government releases the producer price index for April, followed by the consumer price index on Wednesday. The core components of both gauges are expected to rise by 0.2%.
In corporate news Monday,
will pay a little more than $600 million to settle both criminal and civil investigations into its contract-bidding and hiring practices through the early 2000s. The payout is expected to result in a sizable charge for the aerospace concern, the
Wall Street Journal