U.S. stocks open lower amid worries over inverted yield curve, Apple drop

0 Comment(s)Print E-mail Xinhua, December 4, 2018
Adjust font size:

NEW YORK, Dec. 4 (Xinhua) -- U.S. stocks opened lower on Tuesday as investors worried about the inverted yield curve as well as Apple shares being downgraded.

Shortly after the opening bell, the Dow Jones Industrial Average decreased 55.06 points, or 0.21 percent, to 25,771.37. The S&P 500 erased 4.93 points, or 0.18 percent, to 2,785.44. The Nasdaq Composite Index was down 23.42 points, or 0.31 percent, to 7,418.09.

The U.S. three-year treasury note yield stood at 2.824 percent, higher than the five-year note on Tuesday. The inverted yield curve caught investors' attention because historical statistics showed when short-term yields trade above longer-term rates a recession could follow.

On the other hand, Apple shares fell nearly 2 percent in early trading after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies.

HSBC downgraded Apple to hold from buy and cut its 12-month price target to 200 U.S. dollars from 205 dollars.

Other Dow components that plunged included Caterpillar, Intel and Boeing, which declined 3.31 percent, 2.09 percent and 1.63 percent respectively.

On the economic front, investors continued to digest major data released on Monday.

U.S. manufacturing activity rose more than anticipated in November but construction spending was worse than expected, falling for the third straight month.

The ISM manufacturing PMI index registered 59.3 percent in November, better than the October reading of 57.7 percent.

U.S. construction spending fell in October to 1.31 trillion dollars as outlays on private projects declined, according to the Commerce Department. Enditem

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter