Financial markets are beginning the week on a soft note as investors take profits from last week’s gains. After opening slightly lower than Friday’s close, the first hour of trading has seen stocks tumble as investors do a double-take on the signs pointing to economic recovery.
At 10:30 am, the S&P 500 had dropped 0.97% to 930, the Dow was 1.21% lower at 8657, and the Nasdaq was the poorest of all, down 1.42% to 1823.
No economic data will be released on Monday, but investors have plenty to think about as the Federal Reserve ruminates on whether to accept offers from solvent banks to repay money from the Troubled Asset Relief Program.
Meanwhile, McDonald’s said its Q2 profits could fall 8 or 9 cents per share as a result of a depressed greenback. McDonald’s said the central bank shouldn’t accept repayment from banks, whose funds they believe could be better used to stimulate recovery.