# Stocks slide on growth fears, oil tumbles
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-09
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Global stocks fall on growth concerns; oil sinks, dollar
Meta Description: Stock indexes around the world tumble as growth worries and lockdowns in Shanghai drive investors to safer assets. Oil prices sink on coronavirus fears.
URL: https://financedigest.com/stocks-slide-on-growth-fears-oil-tumbleshtml

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By Sinéad Carew

NEW YORK (Reuters) – Stock indexes around the world fell sharply on Monday and the [dollar](https://www.financedigest.com/dollar-falls-after-fed-raises-rates-forecasts-future-hike.html) reversed course after hitting a two-decade high while oil prices sank as concerns about slowing growth and a tightened lockdown in Shanghai pushed investors toward safer bets.

Oil prices tumbled almost 6% on Monday as continued coronavirus lockdowns in China, the top oil importer, fed worries about the demand outlook.

U.S. Treasury yields eased on Monday after the benchmark 10-year note earlier [hit fresh 3-1/2 year highs as inflation fears](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF") continued to roil markets and traders readied for consumer price data and the auction of $103 billion in new government debt later this week.

After Friday’s bruising sell-off, U.S. [stocks sold off sharply on Monday with investors](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") rushing to protect themselves against the prospect of a weakening economy.

With [slowing growth](https://www.financedigest.com/uk-recruiters-slow-pace-of-pay-growth-in-march-rec-survey-shows.html "UK recruiters slow pace of pay growth in March, REC survey shows"), regardless of a recession or not, you’re going to see multiple compression for anything that’s growth related. It’s not necessarily an indictment of their fundamentals. It’s an indictment of their multiples,” said Michael James, [managing director](https://www.financedigest.com/anya-libova-joins-apester-as-uk-managing-director.html "Anya Libova joins Apester as UK Managing Director") of equity trading at Wedbush Securities in Los Angeles.

Investors are far more [concerned with capital preservation at this point, and you’re more concerned with raising](https://www.financedigest.com/u-s-bank-executives-raise-concerns-over-inflation.html "U.S. bank executives raise concerns over inflation") cash in the event the macro environment worsens.

[Central banks](https://www.financedigest.com/stock-pickers-reckon-its-time-to-move-on-from-central-banks.html "Stock pickers reckon it’s time to move on from central banks") in the United States, Britain and Australia all raised interest rates last week, and [investors](https://www.financedigest.com/the-rising-power-of-retail-investors-how-individual-traders-are-shaping-the-stock-market.html) were bracing for more tightening as policymakers fight soaring inflation.

“Markets are continuing to re-price inflation risks as it becomes more evident that inflation is likely to be with us for longer than some people had hoped,” said Chris Zaccarelli, chief [investment officer at Independent Advisor](https://www.financedigest.com/5-tips-choosing-right-investment-advisor.html "5 tips for choosing the right investment advisor") Alliance in Charlotte, North Carolina, also citing increasing recession risks.

And he [sees policy tightening around the world adding to economic “slowdown](https://www.financedigest.com/adecco-sees-signs-of-a-hiring-slowdown-at-start-of-2023.html "Adecco sees signs of a hiring slowdown at start of 2023") pressures that are already building due to the lockdowns in China and the war in Europe.”

The Dow Jones Industrial Average fell 499.33 points, or 1.52%, to 32,400.04, the S&P 500 lost 112.72 points, or 2.73%, to 4,010.62 and the Nasdaq Composite dropped 473.33 points, or 3.9%, to 11,671.34.

On Monday the S&P hit its lowest level in more than a year while [Nasdaq’s trough for the session so far was its lowest point since](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010") November 2020. Both the S&P and Nasdaq on Friday posted their fifth straight [week of declines – their longest losing streaks](https://www.financedigest.com/european-shares-end-five-day-losing-streak-still-down-for-the-week.html "European shares end five-day losing streak, still down for the week") in roughly a decade. \[.N\]

MSCI’s gauge of stocks across the globe shed 2.76% on Monday, hitting its lowest level since December 2020, while emerging [market stocks](https://www.financedigest.com/compelling-tips-to-make-profitable-investments-in-the-stock-market.html "Compelling Tips to Make Profitable Investments in the Stock Market") lost 1.62%.

[GLOBAL CONCERNS](https://www.financedigest.com/oil-prices-steady-on-uncertain-global-outlook-and-supply-concerns.html "Oil prices steady on uncertain global outlook and supply concerns")

[Investors were focused China’s](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") zero-COVID policy, with Shanghai tightening the city-wide lockdown for 25 million residents. The policy prompted [concerns about supply](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") chain problems as many technology companies manufacture their products in China.

While Vladimir Putin on Monday exhorted Russians to battle, he was silent about plans for escalation of the [war in Ukraine](https://www.financedigest.com/ukraine-seeks-debt-payment-freeze-as-war-ravages-economy.html "Ukraine seeks debt payment freeze as war ravages economy"), where there was no let-up in fighting. Kyiv described a stepped-up [Russian offensive in the east and a push to defeat Ukrainian](https://www.financedigest.com/ukrainian-volunteers-recount-three-weeks-in-russian-captivity-allege-beatings.html "Ukrainian volunteers recount three weeks in Russian captivity, allege beatings") troops in a steelworks in Mariupol. {nL2N2X1018\]

With [investors juggling so many worries](https://www.financedigest.com/uk-stocks-slip-as-rate-hike-worries-grip-investors.html "UK stocks slip as rate hike worries grip investors"), one place they were looking for safety was in the dollar index.

The index, which measures the [dollar against a basket of currencies](https://www.financedigest.com/worst-not-over-for-em-currencies-as-u-s-dollar-thunders-on-reuters-poll.html "Worst not over for EM currencies as U.S. dollar thunders on: Reuters poll"), had earlier risen 0.6%, hitting the latest in a string of 20-year highs.

The dollar index fell 0.058%, with the euro up 0.05% at $1.0556. The [yen strengthened 0.17% to the dollar](https://www.financedigest.com/dollar-hits-20-yr-high-as-yen-tumbles-on-dovish-bank-of-japan.html "Dollar hits 20-yr high as yen tumbles on dovish Bank of Japan") at 130.35.

[Dollar strength also put pressure on Latin American stocks](https://www.financedigest.com/stocks-and-gold-cheer-u-s-inflation-picture-while-dollar-slides.html "Stocks and gold cheer U.S. inflation picture, while dollar slides") and currencies on Monday. The Mexican peso lost 1.00% versus the U.S. dollar at 20.36.

U.S. crude recently fell 5.94% to $103.25 per barrel and Brent was at $106.04, down 5.65% on the day. \[O/R\]

Spot gold dropped 1.5% to $1,854.77 an ounce. U.S. gold futures fell 0.94% to $1,857.10 an ounce. \[GOL/\]

(Reporting by Sinéad Carew in New York; Additional reporting by Tommy Wilkes in London; Wayne Cole in Sydney; Editing by Chizu Nomiyama, Lisa Shumaker and Nick Macfie)


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