Dow drops 400 points to start week as Wall Street rally fades

Tech shares fell on Monday as investors feared more aggressive hikes from the Federal Reserve and investors await comments from Fed Chairman Jerome Powell in Wyoming this week.

Big tech names Apple, Amazonand AlphaWhile t decreased by 1.7%, 3.3% and 2.4%, respectively, Netflix More than 5% sank. Semiconductor stocks also took a hit Nvidia, micron and advanced micro devices each fell more than 2%.

Popular software names as well, Atlassian and data dog each rounded more than 4%.

—Samantha Subin

value bitcoin It dropped below $21,000 around 4:15 p.m. ET on Monday. According to CoinMetrics, the cryptocurrency fell just 1% to as high as $21,297 as of 9:46 am. Ethereum It was also down more than 3% to $1,571.35 on Monday morning.

Bitcoin, which is traded around the clock, also fell over the weekend.

Crypto-linked stocks also stumbled. Shares MicroStrategy and Riot Blockchain It fell more than 1%.

The dips in virtual currency come at a time when Wall Street’s summer rally is starting to fade. Three major indices started Monday’s session with losses and all three closed the previous week with losses.

­– Darla Mercado, Nick Wells

shares of AMC fell about 38% It’s in the opening minutes of the trade Monday, after rival theater chain Cineworld announced it was considering filing for bankruptcy.

AMC’s new class of preferred shares, called “APE” units, is also scheduled to begin trading on Monday. Shares were distributed as dividends to existing shareholders and Could be a tool for AMC to raise money in the future.

The move may be putting pressure on AMC’s common stock this morning, as the APE unit dividend is similar to a stock split.

— Jesse Pounds

Stocks opened lower on Monday as the Fed’s summer rally waned ahead of the Jackson Hole symposium. The Dow Jones Industrial Average fell 376 points, or 1.12%. The S&P 500 and Nasdaq Composite fell 1.29% and 1.42% respectively.

—Sarah Min

A measure of stock volatility, called the VIX, has risen to its highest level since August. 3.

this Cboe Volatility Index It climbed 2.6 points to 23.16 on Monday, but is still outside of its latest peak when it hits 30 in June.

—Sarah Min

Federal Reserve Chairman Jerome Powell will take an aggressive stance on inflation in his Jackson Hole speech on Friday, according to Wolfe Research.

“We expect Powell to speak more hawkish in Jackson Hole,” Chris Senyek of Wolfe Research said in a note Monday.

“As we’ve discussed at length before, we believe the Fed should raise the fed funds rate to 4.5%+ to put inflation on a sustainable path towards the FOMC’s long-term 2% target,” he added.

The research firm said the central bank was “behind the curve” and outlined its reasons for not buying the bull state, including slowing global growth and inflated earnings expectations.

—Sarah Min

Shares of Signify Health rose nearly 38% in Monday’s premarket trading. Wall Street Journal report He said Amazon is among several companies bidding for the healthcare company.

The tech giant is competing with CVS Health and UnitedHealth Group in an auction that will value Signify more than $8 billion, according to the report, which cites people familiar with the matter.

Amazon shares fell 2% in premarket trading Monday.

Netflix It has jumped sharply since mid-July, but the good times won’t be long for streaming stock, according to the CFRA.

Analyst Kenneth Leon downgraded Netflix’s rating to sell without delay, noting that “NFLX’s main catalyst – offering new ad-paid subscription plans – may not appear until 2023.”

Netflix shares fell 2% in the front market.

CNBC Pro subscribers can read: the whole story is here.

—Fred Imbert, Carmen Reinicke

this euro The euro zone fell below the US dollar parity on Monday for the first time since mid-July, as recession fears resurfaced.

As of 9:15 am London time, the common currency partially recovered and was trading at exactly $1.

– Elliot Smith

European markets slumped on Monday on fears of more aggressive rate hikes than the US. Federal Reserve and European Central Bank returned to the fore.

pan-European 600 In London, it fell 1.2% by mid-morning, with automobiles falling 2.9%, leading losses as all industries and major stock markets traded in negative territory.

The hawkish signals from ECB policymakers have dampened risk sentiment, with Bundesbank Chairman Joachim Nagel telling a German newspaper that the ECB must continue to raise interest rates even as recession risks in Germany rise.

Minutes of the ECB’s latest policy meeting will be released on Thursday, with investors watching closely for the eurozone flash PMIs on Tuesday.

this People’s Bank of China cuts one-year benchmark loan rate 5 basis points and a five-year interest rate of 15 basis points, according to an online statement.

This brings the one-year loan prime rate to 3.65% and the five-year LPR to 4.3%.

Analysts polled by Reuters expected a 10 basis point cut in the one-year LPR, and half of those polled expected a 15 basis point cut from the five-year rate.

– Abigail Ng

Stocks followed a volatile course this year as recession fears, inflationary pressure and other macro risks affected the markets negatively.

According to Goldman Sachs, Wells Fargo, and others, there are three ways investors can adjust their portfolios to reduce risk or reduce losses.

For subscribers read more here.

— Weizhen Tan

Investors have flocked to growth stocks lately, but as recession fears mount, market watchers are deciding whether to turn to safer bets instead.

But JPMorgan thinks the rally should continue and has identified a few indicators to watch for when considering rotations of growth stocks.

For subscribers read the story here.

— Zavier Ong

Investors are just wrapping up their earnings season with several dozen companies in the S&P 500. According to FactSet, roughly 75% of the 95% of companies reporting earnings in the broader market index exceeded expectations.

—Sarah Min

Fed Chairman Jerome Powell is expected to speak at the central bank’s annual symposium this week in Jackson Hole, Wyoming, to shed light on the pace of future rate hikes.

Powell can make hawkish comments from Fed officials who have recently underlined their commitment to fighting inflation, although investors are enjoying a summer rally, partly with expectations of a less aggressive Fed.

Still, St. Louis Fed President James Bullard said in an interview last week: Wall Street Journal He said he was considering a further 0.75 percentage point increase in interest rates at the September meeting.

Check out CNBC Pro for More on what to expect from the Fed chair.

—Sarah Min

Futures opened lower on Sunday night. Dow Jones Industrial Average futures fell 94 points, or 0.28%. S&P 500 and Nasdaq 100 futures fell 0.36% and 0.69%, respectively.

—Sarah Min