Live stock market news updates: Stocks fall, oil prices fall, and Disney climbs to start a short week over the holiday

US stocks sank on Monday as Wall Street entered a shorter holiday trading week.

The stock and bond markets will be closed for Thanksgiving on Thursday and will end trading at 1pm ET on Friday.

The S&P 500 (^GSPC) was down 0.4%, while the Dow Jones Industrial Average (^DJI) was down about 45 points, or 0.1%. The technology-heavy Nasdaq Composite (^IXIC) fell 1.1%.

Investors valued Fedspeak further in the final hour of Monday’s session. San Francisco Fed President Mary Daly said officials could raise the US central bank’s key interest rate above 5% if inflation does not abate. Daly also noted that canceling the 75 basis point hike in December is “premature,” and “nothing is off the table.”

“I tend to be on the more hawkish side of the distribution,” Daly said on the conference call, referring to a spectrum of her colleagues from the most aggressive about policy tightening to the least.

Oil extended its losses after reports that Saudi Arabia and other OPEC countries are discussing increasing production. A string of COVID-related deaths in China has resurfaced concerns that the country may introduce new restrictions to mitigate the recent outbreak. Both events raised demand concerns, with West Texas Intermediate (WTI) crude futures dropping below $80 a barrel.

The US dollar rose against other currencies on concerns about the COVID-19 picture in China.

Bitcoin (BTC-USD) fell 4% below $16,000 and Ethereum (ETH-USD) fell 6% to just below $1,100 as the impact of the collapse of cryptocurrency exchange FTX continued to pierce the crypto markets.

Meanwhile, shares of Disney (DIS) rose 6% despite a one-day drop in other areas of the market after the media giant announced late Sunday that former CEO Bob Iger would return to lead the company as CEO, effective. Immediately.

Disney CEO Bob Iger speaks during the Bloomberg Global Business Forum in New York City, New York, US, September 25, 2019. REUTERS/Shannon Stapleton

Monday’s moves came after a lackluster week on Wall Street, with sentiment weighed by renewed concerns about rising interest rates. The S&P 500 was down about 0.7% for the period and the Nasdaq 1.6%, while the Dow was roughly flat.

Historically, Thanksgiving week has tended to be bullish. Over the past half century, the S&P 500 has gained an average of 0.5% during the holiday week and has returned positive 68% of the time, according to data from Schaeffer’s Investment Research. The Wednesday before Thanksgiving was positive 78% of the time with an average gain of 0.3%, while the following day, 66% of the time, with an average increase of 0.2%.

“The ‘low inflation’ bump in the stock market lost some momentum last week, but the bulls hoping to get the rally back on track will probably look at historical trading trends around Thanksgiving,” Chris Larkin, managing director of trading at Morgan Stanley’s E* Trade said in a note. “While people take a holiday on Thanksgiving Day, the stock market is not so inclined: Even in the midst of a shorter trading week, the SPX since 1950 has moved nearly as much during Thanksgiving week as it has during the average five-day trading period.” .”

Investors are in for a few quiet days. Minutes of the Federal Reserve’s November rate-setting meeting scheduled for Wednesday are the highlight of this week’s light economic calendar. On the company side, a few other earners are set for release, including Dell Technologies (DELL), HP (HPQ), Dollar Tree (DLTR), and Nordstrom (JWN).

NEW YORK, NY - NOVEMBER 17: Traders work on the floor of the New York Stock Exchange during morning trading on November 17, 2022 in New York City.  Stocks are expected to decline as the stock market opens with higher interest rates as Federal Reserve officials signal more interest rate hikes to continue slowing inflation.  (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NY – NOVEMBER 17: Traders work on the floor of the New York Stock Exchange during morning trading on November 17, 2022 in New York City. (Photo by Michael M. Santiago/Getty Images)

A reading of the minutes from the Federal Open Market Committee, which sets monetary policy, is likely to show officials planning to raise interest rates by half a point at their December meeting.

DataTrek’s Nicholas Colas notes that the odds for more aggressive monetary policy next year increased last week, both in terms of where the federal funds rate will peak and where next year will end.

About a week ago, futures indicated odds of between 81% and 19% on a 50-75 basis point rate hike next month after a light CPI. After hawkish assurances from officials about the need for more price increases, the odds of a 0.75% rise rose slightly to 24%.

Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @employee

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