U.S. Stocks Move Sharply Lower Amid Concerns About Outlook

(RTTNews) - Following the mixed performance seen in the previous session, stocks moved sharply lower during trading on Monday. The major averages all showed significant moves to the downside, with the tech-heavy Nasdaq leading the way lower.

The major averages saw continued weakness late in the session, falling to new lows for the day. The Dow slumped 413.04 points or 1.2 percent to 34,308.08, the Nasdaq plunged 299.04 points or 2.2 percent to 13,411.96 and the S&P 500 tumbled 75.75 points or 1.7 percent to 4,412.53.

Weakness in the overseas markets carried over onto Wall Street amid concerns about the outlook for monetary policy and the global economy.

Worries about the ongoing war between Russia and Ukraine and the coronavirus outbreak in also weighed on the markets.

The weakness on Wall Street also comes amid a continued increase in treasury yields, with the yield on the benchmark ten-year note reaching its highest levels in three years.

Reports on consumer and producer price inflation, retail sales and industrial production are likely to attract attention in the coming days.

The data may impact expectations regarding how aggressively the Federal Reserve plans to tighten monetary policy.

Energy stocks helped to lead the markets lower amid a steep drop by the price of crude oil. Crude for May delivery tumbled $3.97 to $94.29 a barrel amid concerns about the outlook for demand.

Reflecting the weakness in the energy sector, the NYSE Arca Oil Index plunged by 3 percent and the Philadelphia Oil Service Index plummeted by 2.8 percent.

Significant weakness was also visible among biotechnology stocks, as reflected by the 2.5 percent drop by the NYSE Arca Biotechnology Index.

Semiconductor, healthcare and retail stocks also saw notable weakness, while airline stocks were among the few groups to the downtrend.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index slid by 0.6 percent, while China's Shanghai Composite Index plunged by 2.6 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index inched up by 0.1 percent, the German DAX Index and the U.K.'s FTSE 100 Index fell by 0.6 percent and 0.7 percent, respectively.

In the bond market, treasuries extended downward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 6.7 basis points to a three-year closing high of 2.780 percent.