U.S. stocks edged down Monday, as major stock indexes retreated from last week’s all-time highs after markets in China and Hong Kong plummeted.
The Dow Jones Industrial Average slipped 0.1%. The blue chip index on Friday crossed the 35000 closing milestone for the first time in its history after climbing over 1% last week.
The broader S&P 500 benchmark ticked 0.1% lower Monday. The Nasdaq Composite Index fell 0.2%, suggesting that large technology stocks may grind lower.
The mood in global markets soured after Beijing took aim at some of China’s fast-growing listed companies over the weekend, prompting a sharp selloff and fueling concerns about regulatory risks in a key overseas market. The Shanghai Composite Index dropped 2.3% by the close of trading, while Hong Kong’s Hang Seng Index shed 4.1% in its biggest one-day rout in over a year.
“More regulatory tightening from China is having an impact on sentiment,” said Hugh Gimber, a strategist at J.P. Morgan Asset Management. Worries about rising Covid-19 cases and whether that may lead to fresh lockdowns and more supply-chain bottlenecks is also triggering some pessimism in markets, he said.