The Dow Jones Industrial Average fell on Tuesday as traders struggled to recover from heavy losses in the previous session and looked to more economic data.
The 30-share index lost 43 points, or 0.1%. The Nasdaq Composite was down 0.4%, while the S&P 500 was down 0.3%.
The major averages suffered steep losses on Monday, with the Dow falling nearly 500 points. The S&P 500 and Nasdaq each lost more than 1%, after protests in mainland China against the country’s zero-Covid policy began over the weekend. This led to concerns about the potential for Chinese Covid protocols to once again hamper global supply chains.
Overnight, however, global markets appeared to catch a breather as a Chinese official told reporters that 65.8% of people “over 80” had received booster shots. In addition, the government reported the first drop in Covid infections in mainland China in more than a week. This contributed to a rally in the Hong Kong and Shanghai markets.
“It just adds another question mark at a time when there are a lot of question marks we have about where we’re going in terms of the global economy,” said Keith Buchanan, portfolio manager at Globalt Investments. on developments in China.
“The market only had to react to what has been presented, and it has been difficult to foresee the next development”, he added. “There is nothing less predictable than a pathogen.”
Inside the US, investors will be watching data due later this week on topics such as gross domestic product and jobs to learn how the economy is responding to inflation.
Fed Chairman Jerome Powell is scheduled to speak at the Brookings Hutchins Center on Fiscal and Monetary Policy on Wednesday. Investors will be listening for clues about whether the central bank will slow or stop interest rate hikes.