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US stock markets fall ahead of busy week for central banks

US stock markets dropped from record levels to open the week, the S&P 500 down 0.9% as Apple (NASDAQ: AAPL) gave up recent gains as it nears a US$3 trillion valuation.

The Nasdaq underperformed, falling by 1.4% on the back of a 5% fall in Tesla (NASDAQ: TSLA), which came after Elon Musk was announced as Time’s Person of the Year.

The Dow Jones finished the day 0.9% lower, hurt by drops in airline, cruise and hotel stocks as signs the Omicron variant may be seeing another surge in cases in the US.

This week sees some 20 central bank meet to discuss policy, the majority of which are seeking to balance significant accommodation, with the risk that they would be hiking rates into a slowing domestic economy.

Featured video: Economics 101 with Dr Sam Wylie

Harley Davidson demerges

Motorcycle brand Harley Davidson (NYSE: HOG) announced it would be demerging its electric motorcycle business via a SPAC, with shares gaining close to 5% on the news.

Pfizer acquires

Pfizer (NYSE: PFE) agreed to buy Arena Pharmaceuticals for US$6.7 billion, with the target company providing therapies to treat immune-inflammatory diseases. Pfizer shares finished the session nearly 5% higher.

US stock market movers

Here’s how other popular US stocks fared on Monday.

  • Peloton (NASDAQ: PTON) up 7.3%
  • Chewy (NYSE: CHWY) up 6.8%
  • Moderna (NASDAQ: MRNA) up 5.8%
  • Snapchat (NYSE: SNAP) down 5.3%
  • Shopify (NYSE: SHOP) down 4.4%
  • NVIDIA (NASDAQ: NVDA) down 6.7%

Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to follow US markets lower at the open this morning. For a round-up of the latest news, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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