Stocks set to dip after Chinese rate hike
U.S. stock indexes were poised to fall in early trading Monday after China raised an interest rate over the weekend to combat rising inflation.
It is the second time in three months that China has taken steps to slow the pace of its economic expansion. Inflation jumped to its highest levels in two years in November. Rising prices have led poor families to spend more than half of their incomes on food.
Ahead of the opening bell, the Dow Jones industrial average futures were down 40 points, or 0.3 percent, to 11,478. S&P 500 futures fell 5, or 0.3 percent, to 1,243. Nasdaq 100 futures fell 5, or 0.2 percent, to 2,222.
A blizzard in the Northeast is likely make this a quiet day on Wall Street following the holiday weekend. There are no major economic reports or corporate earnings announcements scheduled for Monday. Trading volume is expected to be light throughout the week ahead of New Year's Day.
Shares were down sharply overseas. The Euro Stoxx 50, which tracks blue chip companies in countries that use the euro, fell 1.5 percent. Asian stock markets closed down less than 1 percent.