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Wall Street Opens Cautiously Amid Recession Fears

The stock exchanges in New York started the new trading week with small price movements on Monday. The recession fears continue to cause caution among Wall Street investors.

This was partly due to rising interest rates and the turmoil in the foreign exchange market. Last week saw significant declines in the stock markets.

The leading Dow-Jones index was 0.2 percent lower at 29,533 points shortly after the opening bell. The broad-based S&P 500 was virtually unchanged at 3,692 points. The technology indicator Nasdaq was 0.5 percent higher at 10,924 points.

The value of the British pound fell to a record low against the US dollar earlier on Monday. The reason is fears of a deep recession in the United Kingdom after the new British Chancellor of the Exchequer, Kwasi Kwarteng, presented a controversial package of tax cuts on Friday. Shortly after the opening bell, the euro was worth $0.9667, against $0.9722 on Friday.

Among the companies, attention was paid to casino company Las Vegas Sands, which won almost 10 percent. The casino operator took advantage of the news about the Chinese government’s plans to gradually allow groups of tourists from China to return to Macau, where strict corona measures are currently in place. Earlier in the day, Hong Kong-listed Sands China had already gained almost 16 percent. Las Vegas Sands holds more than two-thirds of the shares of Sands China.

Utility company PG&E rose 4.7 percent. The company will be included in the S&P 500 from early October. PG&E will be replaced by Citrix Systems, which Vista Equity Partners will acquire. Taxi and mobility service Lyft lost 2 percent shortly after the opening bell after advice was cut by the Swiss bank UBS. The experts cited a driver survey showing drivers prefer Uber over Lyft.

A barrel of American oil became 1.1 percent more expensive at $79.55. Brent oil rose 0.8 percent and cost $86.35 a barrel.

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