US close: Major indices lower as China fears weigh on stocks

dl nyse new york stock exchange wall st street city finance dow jones nasdaq sp finance dollar dollars us usa united states of america 2 — New York Stock ExchangeSharecast photo / Josh White

Wall Street stocks were in the red at the close of trading on Monday as fears that the Chinese government may reintroduce Covid-19 containment measures saw the holiday-shortened trading week kick off with losses.

At the close, the Dow Jones Industrial Average was down 0.13% at 33,700.28, while the S&P 500 lost 0.39% to 3,949.94 and the Nasdaq Composite saw out the session 1.09% weaker at 11,024.51.

The Dow closed 45.41 points higher on Monday, taking a modest bite out of gains recorded in the previous session.

News that China had reported its first mainland Covid deaths since May over the weekend also weighed on sentiment, prompting fears that the Asian superpower may again reintroduce restrictions aimed at stemming the spread of the virus spread.

Retail earnings will again be in focus this week, with Best Buy, Nordstrom, Dick's Sporting Goods, and Dollar Tree all set to report before the end of the week.

Markets will also likely be quiet towards the tail end of the week, with traders taking a break for Thanksgiving on Thursday. However, investors will likely keep a keen eye on Black Friday holiday shopping reports for any clues as to current consumer confidence levels.

On the macro front, the Chicago Federal Reserve's national activity index fell to -0.05 in October, the weakest reading in four months, down from an upwardly revised print of 0.17 in September, suggesting slower national economic growth.

In the corporate space, Disney shares traded higher after the group announced that Bob Iger was set to return as chief executive, with immediate effect, while Coinbase shares were in the red as rival FTX's bankruptcy weighed on the stock.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walt Disney Co. (DIS) $97.58 6.30%
Walgreens Boots Alliance, Inc. (WBA) $40.59 2.11%
Coca-Cola Co. (KO) $62.10 1.54%
Merck & Co. Inc. (MRK) $105.61 1.32%
Procter & Gamble Co. (PG) $144.38 1.27%
Home Depot Inc. (HD) $316.78 1.15%
3M Co. (MMM) $127.63 0.69%
Walmart Inc. (WMT) $151.17 0.61%
Travelers Company Inc. (TRV) $185.55 0.54%
McDonald's Corp. (MCD) $274.56 0.42%