- US stocks drop as zero-COVID lockdown protests spread in more cities across China.
- Oil prices dropped, with Brent crude, the international benchmark, shedding roughly 2.8%.
US stocks dropped Monday as rare protests in China against the government's strict zero-COVID policies broke out.
The unrest comes as a spike in COVID-19 infections prompted more local lockdown controls despite recent hopes of easing policy from Beijing. The world's second-largest economy has seen almost three years of stringent lockdowns, which have weighed on growth.
Events in China continue to drag on oil prices. Brent crude dropped as low as $81.30 a barrel, which would mark the lowest close in 10 months if it maintains that level throughout the day.
Here's where US indexes stood as the market opened 9:30 a.m. on Monday:
- S&P 500: 4,005.53, down 0.51%
- Dow Jones Industrial Average: 34,276.21, down 0.21% (the 70.82 points)
- Nasdaq Composite: 11,174.57, down 0.46%
Here's what else is happening:
- Veteran investor Mark Mobius said China's leaders will crack down harshly on protestors, which will cause markets to stutter.
- Beaten-down stocks may tumble further as a global recession and earnings slump take hold, according to Peter Boockvar.
- An Australian LNG exporter sent a rare cargo to Europe, with German utility Uniper receiving it.
- Ukrainian President Zelenskyy is pushing for the price cap on Russian oil to be as low as $30 a barrel.
In commodities, bonds, and crypto:
- Oil prices slipped, with West Texas Intermediate down 2.53% to $74.35 a barrel. Brent crude, the international benchmark, dropped 2.79% to $81.30 a barrel.
- Gold edged 0.09% higher to $1,755.40 per ounce.
- The 10-year yield rose 2 basis points to 3.68%.
- Bitcoin dropped 2.28% to $16,173.