US, Europe Stocks Dip
NEW YORK (AP) -- U.S. stocks are slipping again Monday morning, and technology and internet companies are taking some of the biggest losses. Energy companies are down with oil prices. Stocks are coming off two weeks of declines, and a big jump in bond yields startled investors last week.
Stocks in Europe are falling after Italy's new deputy premier said the government won't deviate from its plan to increase spending. U.S. bond markets are closed for the Columbus Day holiday.
KEEPING SCORE: The S&P 500 index gave up 3 points, or 0.1 percent, to 2,881 as of 9:50 a.m. Eastern time. The Dow Jones Industrial Average fell 46 points, or 0.2 percent, to 26,401. The Nasdaq composite lost 27 points, or 0.4 percent, to 7,760. The Russell 2000 index slid 4 points, or 0.3 percent, to 1,628.
The S&P 500 fell 1.5 percent over the last two weeks. It hadn't taken two consecutive weeks of losses since the end of June. The Nasdaq and Russell are each coming off their worst week since late March.
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Trading on Wall Street is expected to be light because of Columbus Day. Low trading volume can sometimes lead to large swings in the market.
BONDS: Bond markets were closed. The yield on the 10-year Treasury note, an important benchmark for mortgages and other types of long-term loans, jumped to 3.22 percent last week. That's its highest in more than seven years.
EARLY LOSERS: Among technology companies, Mastercard fell 1.7 percent to $209.65 and Salesforce skidded 1.5 percent to $152.76 while Apple lost 0.7 percent to $222.66. Netflix pulled internet companies lower as it declined 1.8 percent to $344.94.
EUROPE: Italy's deputy premier vowed to press ahead with a plan to increase spending and the country's deficit after the European Commission expressed "serious concern" about the notion. Five-Star leader Luigi Di Maio said Saturday "there is no plan B" to a proposal that will increase the deficit to 2.4 percent of annual gross domestic product next year.
Italy's FTSE MIB dropped 2.5 percent and Italian bond prices dropped, sending yields higher. Germany's DAX fell 1 percent and the CA 40 in France sank 1.2 percent. In Britain, the FTSE 100 fell 0.9 percent.
The euro sank to $1.1471 yen from $1.1525.
ASIA: Beijing injected money into its cooling economy by reducing the level of reserves banks are required to hold, and its central bank told Chinese banks to lend more to entrepreneurs. Chinese leaders are trying to shore up economic growth that began to cool after Beijing tightened lending controls last year to rein in a debt boom. A tariff fight with U.S. President Donald Trump has added to downward pressure on growth.
Hong Kong's Hang Seng retreated 1.4 percent and the Kospi in South Korea fell 0.6 percent. Japanese markets were closed for a holiday.
The dollar fell to 113.22 yen from 113.73 yen late Friday.
ENERGY: Benchmark U.S. crude slid 0.5 percent to $73.95 a barrel in New York and Brent crude, used to price international oils, dropped 0.8 percent to $83.49 a barrel in London.
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