US stocks give up early gains as Apple signals it is slowing hiring

U.S. stocks gave up their first gains on Monday afternoon after news of slowing growth at technology group Apple reignited worries about a possible recession.

The S&P 500, which rose 1% earlier in the day, fell 0.5% shortly after Bloomberg reported that America’s most valuable company plans to slow growth in hiring and spending in some divisions. The Nasdaq Composite was also 0.5% lower.

Apple’s stock was down 1.5% in mid-afternoon, after climbing as much as 0.9% earlier.

US stocks had started the day with a bang after strong gains in Europe and Asia. A broad FTSE index of Asia-Pacific stocks rose nearly 2% after Chinese state media reported that regulators in Beijing were urging banks to finance developers following a boycott by property owners on the mortgage payments on unfinished homes.

Hong Kong’s Hang Seng index jumped 2.7%, its biggest daily rise since late May, while the CSI 300 index rose 1%. The Golden Dragon Index of US-listed Chinese stocks rose 2.5%.

European markets also rose, with the continent-wide Stoxx 600 up 0.9%.

The moves followed a bullish session for U.S. stocks on Friday, as strong retail sales data and a survey hinting at easing inflation expectations tempered concerns over the Reserve’s aggressive monetary tightening. Federal with the slowing economy.

Unexpected U.S. inflation data last week fueled fears the Fed could raise rates by a full percentage point at its next policy meeting, but expectations eased on Monday, with futures markets implying an 81% chance of a lower increase of 0.75 percentage points.

“The market is weak and when you get some less bad news, the market enjoys a moment of relief,” said Roger Lee, head of UK equity strategy at Investec.

However, he added that high inflation and the potential for recession in the United States and Europe meant global stocks could fall further, despite the FTSE All World stock index falling by a fifth this year.

“I don’t think investors fully appreciate that the performance you’ve seen in equities so far this year is purely interest rate driven, it has nothing to do with potential downgrades to earnings as we enter a downturn,” Lee said.

In the currency markets, the dollar index fell 0.7% as traders cut bets on rising rates.

The euro, which fell below $1 last week for the first time in 20 years, rose 0.6% to $1.015 ahead of a meeting of the European Central Bank on Thursday, at which it is expected to rise. its deposit rate for the first time since 2011 to combat record inflation.

Government bond yields rose in European and US markets. The 10-year US Treasury yield climbed 0.03 percentage points to 2.96%, while the 10-year German Bund rose 0.09 percentage points to 1.16%. Yields rise when prices fall.

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