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Stocks fell in Monday trading, continuing a steady, weeks-long decline as the U.S. dollar and interest rates rose after governments on both sides of the Atlantic took aggressive action to stifle inflation.
The Dow Jones Industrial Average fell 325.91 points, or 1.10%, to 29,264.50. The S&P 500 dropped 37.71 points, or 1.02%, to 3,655.52, and the Nasdaq Composite fell 65.00 points, or 0.60%, to 10.802.92.
The Federal Reserve hiked interest rates 0.75% last week, the third consecutive increase at that rate. The increase coupled with a U.K. tax cut last week sent the dollar soaring against the British pound (GBP), which dropped to $1.0694, or 1.41%, against the dollar in late trading Monday.
A strong dollar cuts into the profits of multinational companies and disrupts global trade.
“Such U.S. dollar strength has historically led to some kind of financial/economic crisis,” Michael Wilson, a chief U.S. equity strategist at Morgan Stanley, wrote in a note. “If there was ever a time to be on the lookout for something to break, this would be it.”
Some of the tech stocks that declined included Facebook‘s parent company Meta (META), which closed at $136.37, down $4.04, or 2.88%. Qualcomm’s (QCOM) price of shares fell $1.45, or 1.20%, to close at $119.74
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