Stocks and commodities were in the midst of a sharp global selloff after investors became worried that strict Covid-19 lockdowns in China could impinge economic activity and stymie supply chains.
The Dow Jones Industrial Average on Friday posted its largest one-day drop in 18 months, losing 981 points, or 2.8 percent. Today, Chinese stock indices lost 5 percent of their value in their worst daily performance in two years, and U.S. stock futures were pointed sharply lower again headed into today’s trading session.
Investors are squeamish not only about Covid-19 policies in China but also the ongoing Ukraine war and its long-term impact on inflation, together with a potentially faster tightening of monetary policy at the Federal Reserve, according to the Wall Street Journal today.
Brent Crude oil declined about 5 percent this morning to below $101 per barrel.