On Friday, Wall Street’s benchmark S&P 500 index lost 1.1%, led by a sell-off of tech companies that led this year’s rebound. Investors worry they might have become to expensive.
Market momentum shifted after the Federal Reserve said last week the US economic outlook is uncertain. Growth in some industries has slowed after additional unemployment benefits that supported consumer spending slowed. Congress has yet to agree on a new support package.
“With 43 days to the US election, fingers crossed may be what little one can do when it comes to the fiscal stimulus hopes,” said Jingyi Pan of IG in a report.
Investors also were rattled by a rise in coronavirus cases in Britain. On Sunday, the government reported 4,422 new infections, its biggest daily rise since early May. An official estimate shows new cases and hospital admissions are doubling every week.
The Shanghai Composite Index lost 0.2% to 3,330.03 and the Hang Seng in Hong Kong shed 0.6% to 24,310.84.
The Kospi in Seoul was up less than 0.1% at 2,413.19, while Sydney’s S&P-ASX 200 sank 0.7% to 5,823.70.
New Zealand declined, while Singapore and Jakarta advanced.
Global markets have recovered most of this year’s losses, though the bulk of gains went to big tech companies and a handful of stocks, while most issues still are down.
Investors have been encouraged by central bank infusions of credit into struggling economies and hopes for a vaccine to end the coronavirus pandemic that plunged the global economy into its deepest downturn since the 1930s.
Forecasters warn, however, that the rebound might be too early to be supported by uncertain economic activity as infection numbers rise in the United States, Brazil and some other countries.
Some governments have re-imposed anti-disease controls that hamper business.