U.S. stock futures fall as Chinese protests rattle markets, oil hits 2022 low

Wall Street finished mixed on Friday with the Dow notching its highest close since April 21. The S&P 500  SPX, -0.03%  finished down 1.1 points, or less than 0.1%, at 4,026.12; the Dow Jones Industrial Average  DJIA, +0.23%  closed 152.97 points, or 0.5%, higher at 34,347.03; and the Nasdaq Composite COMP, +1.42%  shed 58.96 points, or 0.5%, to 11,226.36.

Stocks in Asia declined Monday, led by a 2% fall by Hong Kong’s Hang Seng Index HSI, -2.06%. The Shanghai Composite SHCOMP, -1.09% slid as well, as thousands of protesters in major Chinese cities, including Beijing and Shanghai, called for President Xi Jinping to resign. The unprecedented protests were spurred by frustration with China’s strict lockdowns as part of its “zero-COVID” policy.

“Unsurprisingly, there is more significant uncertainty in China’s reopening trajectory, which is getting priced into markets on reports of protests over the weekend,” Stephen Innes, managing partner at SPI Asset Management, said in a note Sunday night.

“We knew we would be hit with China COVID jitters this morning, but the protests have caught the market by surprise,” he added. “Still, this morning’s price action could reverse quickly if it becomes clear that reports of protests will not lead to tighter COVID restrictions.”

Oil prices fell sharply Sunday as well, as investors worried about slipping demand in China. West Texas Intermediate crude futures CL.1, -3.00% were last down nearly 3%, at $74.17 a barrel, its lowest price year to date. Prices for Brent crude BRNF23, -2.86%, the international standard, sank as well.