Shares slide as Wall Street stays on the edge

Thomson Reuters

Wall Street remained nervous on Monday as all eyes remained focused on rising US rates, trade tensions and the prospect of slower economic growth worldwide.

The three major US indexes continued to fall after losing about 4% last week. With the tech stocks that led the last bullish movement among the biggest losers, the Nasdaq Composite lost 0.5%. The S & P 500 fell 0.3% below the 200-day moving average, while the Dow Jones Industrial Average was down 0.1%.

"The decline in US equities reflects a host of different factors, but the break in real returns introduces new uncertainties around global financial plumbing," wrote Mark McCormick, TD Securities Strategist.

Treasury yields rose sharply, with 10-year yields at 3.15% and 2-year yields at 2.85%, as a result of weaker-than-expected economic data. In view of further tightening of the Federal Reserve in mind, Investors had sold bonds last week and sent yields to seven and a half-year highs.

In pre-market trading, a closely monitored measure of consumption was well below the economist's expectations for a second consecutive month. Retail sales in the United States barely rose in September, according to the Commerce Department, up 0.1% in September. Economists polled by Reuters expected a gain of 0.6%.

Sears Holdings Corp also filed for bankruptcy protection on Monday morning. The parent company of Sears and Kmart, 125 years, plans to close at least 142 stores.

Diplomatic tensions between the United States and Saudi Arabia over the disappearance of a Washington Post reporter have pushed oil prices up, Brent crude, an international benchmark, having risen by nearly 1 % at 81.29 dollars a barrel. Turkish officials believe that Jamal Khashoggi, a critic of Crown Prince Mohammed bin Salman, was murdered after entering the Saudi consulate in Istanbul nearly two weeks ago. Riyad denies these allegations.

Over the weekend, President Donald Trump threatened Saudi Arabia with "severely punishing" if it were found to be responsible. The oil-rich country, which has said it could react with economic sanctions, should play an even more crucial role in maintaining global supply when US sanctions against Iran come into effect. force next month.