Stock Market Today: China COVID Restrictions, Nasdaq Leads Markets Lower
U.S. stocks fell on Monday to start a Thanksgiving-shortened week, weighed down by concerns over China's response to COVID cases.
The Dow Jones Industrial Average fell 44.82 points, or 0.13%, to close at 33,700.87. The S&P 500 fell 15.35 points, or 0.39%, to close at 3,949.99, and the Nasdaq Composite fell 121.55 points, or 1.09%, to close at 11,024.51.
China reported three COVID-related deaths over the weekend, the first fatalities since May. Beijing tightened COVID restrictions and there was concern the government could tighten nationwide protocols after recently relaxing measures.
The Federal Reserve's plans to fight inflation also continued to concern investors during a short trading week. U.S. markets are closed Thursday and will close at 1 p.m. ET on Friday.
The Federal Reserve has increased interest rates an unprecedented seven times this year. More increases in 2023 are likely, officials said, even if that means helping to push the economy into recession.
Some of the other stocks that declined Thursday included Meta Platforms (META), which closed at $109.86, down $2.19, or 1.95%. Tesla's (TSLA) price of shares fell $12.32, or 6.84%, to close at $167.87.
"The picture could get a bit muddled in the near-term as we move through a lower trading activity Thanksgiving week... but beyond that, the bear market is likely to persist as conditions typically consistent with an equity trough have not yet been reached," Goldman Sachs' analyst Chris Hussey wrote in a note to clients. "We expect markets to transition into a 'Hope' phase of the next bull market at some point in 2023, but from a lower level."
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