Wall Street slips as coronavirus lockdown protests spread in China
- The S&P 500 fell 1.5 per cent, the Dow Jones Industrial Average finished 1.4 per cent lower, while the Nasdaq composite slid 1.6 per cent
- Unrest over the country’s zero-Covid policy stoked worries that a crackdown or expanded lockdowns could slow the Chinese economy
A broad slide on Wall Street left stocks lower on Monday as global financial markets reacted to protests in China calling for President Xi Jinping to step down amid growing anger over severe Covid-19 restrictions.
The S&P 500 fell 1.5 per cent, clawing back all of the benchmark index’s gains from last week. The Dow Jones Industrial Average finished 1.4 per cent lower, while the Nasdaq composite slid 1.6 per cent.
The world’s second largest economy has been stifled by a zero-Covid policy which includes lockdowns that continually threaten the global supply chain at a time when recession fears hang over economies worldwide. The recent demonstrations there are the greatest show of public dissent against the ruling Communist Party in decades.
The unrest stoked worries on Wall Street that if Xi cracks down even further on dissidents there or expands the lockdowns, it could slow the Chinese economy, which would hurt oil prices and global economic growth, said Sam Stovall, chief investment strategist at CFRA.
“A lot of people are worried about what the fallout will be, and basically are using that as an excuse to take some recent profits,” he said.