BEIJING (AP) — Stocks opened lower on Wall Street on Friday, with the S&P 500 on track to end 2022 with its biggest drop since the financial crisis 14 years ago. The Nasdaq and Dow Jones Industrial Average were also set to finish in the red. Earlier in the week, Tesla shares continued to bounce back from sharp losses. Southwest Airlines has stabilized as its operations returned to relative normality after a flood of cancellations during the holiday season. The S&P 500 fell 0.7%. U.S. Treasury yields are higher.
This is a breaking news update. An early AP report follows.
Asian shares rose on Friday, while European shares opened lower, as most major markets posted steep annual losses after a year reeling from Russia’s invasion of Ukraine and interest rate hikes to cool soaring inflation.
Shanghai and Tokyo lead the way. London and Frankfurt fell. U.S. futures were lower heading into Wall Street’s final trading day of 2022. Oil prices retreated.
Wall Street’s benchmark S&P 500 rose on Thursday after the number of people filing for unemployment benefits rose only slightly last week despite a rate hike to cool inflation by slowing economic activity.
“Given the thin market news, the advance has the characteristics of a dead cat bounce,” Stephen Innes of SPI Asset Management said in a note.
In early trade, London’s FTSE fell 0.4% to 7,483.42. It’s on track to be the only major market growing in 2022, growing about 1% for the full year.
Other markets were set for annual losses after Russia’s attacks on Ukraine pushed up oil and wheat prices and the Federal Reserve and other global central banks raised interest rates to slow economic activity and cool inflation that is at multi-decade highs. China’s shutdown of Shanghai and other cities to combat the COVID-19 outbreak has disrupted manufacturing and shipping.
Frankfurt’s DAX fell 0.6 percent to 13,996.57. It will lose 12% in 2022. Paris’ CAC-40 index fell 0.5 percent to 6,539.21. It fell 9.5% for the year.
On Wall Street, S&P 500 futures fell 0.4%. The Dow Jones Industrial Average fell 0.3%.
On Thursday, the S&P 500 rose 1.7%. It will end the year down about 20%, which would be its biggest annual drop since 2008.
The Dow rose 1%, while the Nasdaq Composite gained 2.6%. Both are facing annual losses.
In Asia, the Shanghai Composite rose 0.5% to 3,089.25. China’s benchmark is on track to end 2022 down more than 14% after the world’s second-largest economy slumped due to anti-virus controls and a crackdown on corporate debt.
Tokyo’s Nikkei 225 ended flat at 26,094.50. Its annual loss was nearly 10%. Hong Kong’s Hang Seng rose 0.2% to 19,781.41. It is down more than 14% this year.
Sydney’s S&P-ASX 200 index rose 0.3 percent to 7,038.70. India’s Sensex opened 0.3 percent higher at 61,133.88. New Zealand fell, while markets in Southeast Asia rose.
South Korean markets were closed for a holiday. The country’s benchmark Kospi index is set to fall more than 25% this year.
Investors worry about the central bank’s willingness to trigger a recession if necessary.
The Fed’s main lending rate has remained in a range of 4.25% to 4.5% after raising rates seven times this year. The US central bank forecasts a range of 5% to 5.25% by the end of 2023. Its forecast does not call for a rate cut before 2024.
In energy markets, benchmark U.S. crude fell 50 cents to $77.90 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 56 cents to $78.40 on Thursday. Brent crude, used as the basis for international oil trade prices, fell 36 cents to $83.10 a barrel in London. It fell $1 to $82.26 a barrel in the previous session.
The dollar fell to 132.02 yen from 132.90 yen on Thursday. The euro edged lower to $1.0668 from $1.0677.
Copyright 2022 The Associated Press. all rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.