Wall Street shares tumbled on Monday on disappointing quarterly results from Tyson Foods, while investors reevaluated their forecasts on whether the US Federal Reserve would start cutting rates.
The downbeat mood was added after the United States shot down a suspected Chinese spy balloon that floated across the country for several days.
At 10:24 a.m., the Dow Jones Industrial Average was down 179.60 points, or 0.53%, at 33,746.41, the S&P 500 was down 33.71 points, or 0.81%, at 4,102.77 and the Nasdaq Composite was down 125.32 points, or 1.04. %, at 11,881.64.
All 11 major S&P 500 indexes were in the red, with the real estate sector down 1.5%.
The non-farm payrolls report on Friday showed the US economy added jobs at a rapid pace, spooking investors.
Among individual companies, Tyson Foods Inc slipped 5.8% on missing analysts’ estimates for quarterly revenue and profit. The food giant’s low quarterly profit missed analysts’ expectations, saying “operational inefficiencies” impacted profitability.
“This is the first time I’ve seen all the markets work against us at the same time,” Chief Executive Officer Donnie King told analysts on a call.
Dell Technologies fell 2.6 percent after announcing it would lay off about five percent of its global workforce, or about 6,650 employees, marking the latest casualty of a wave of job losses in the US tech sector.
According to Refinitiv, more than 69% of S&P 500 firms reported results that exceeded expectations. Overall, analysts are still expecting a 2.8% decline in quarterly earnings for S&P 500 firms.
The yield on the 10-year US Treasury note, a proxy for Fed interest rate policy, climbed higher after strong jobs and services sector data released on Friday.
Analysts pointed to concerns over high equity valuations after a strong January for US stocks. Market watchers have cut their earnings estimates in recent weeks due to mounting cost pressures.
Markets were volatile despite comments from Treasury Secretary Janet Yellen ABC Earlier today she sees a path where inflation comes down “significantly” while the economy remains strong.
Markets are jittery as traders await Fed Chair Jerome Powell’s speech on Tuesday, eyeing his comments on the forward economic outlook.
Traders will now await earnings reports from Walt Disney Co, PepsiCo Inc and AbbVie Inc this week.
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