Stocks Opened Lower, March Rate Hike in Focus

U.S. stocks opened lower on Monday, as investors weighed the near-certain prospect of an interest rate hike in the United States this month against news of China’s slower 2017 growth target. The Dow Jones Industrial Average lately dropped 43.79 points, or 0.21%, to 20,961.92. The S&P 500 was down 10.18 points, or 0.43%, to 2,372.94. The Nasdaq Composite fell 29.54 points, or 0.50%, to 5,841.21.

China has cut its growth target this year as the world’s second-largest economy pushes through painful reforms to address a rapid build-up in debt, and erects a “firewall” against financial risks.

Oil prices fell Monday, with market participants blaming lower growth forecasts in China in addition to signs that U.S. oil producers are continuing to ramp up activity. The May contract for global crude benchmark Brent was down 0.59% at $55.57 a barrel, while April deliveries of its U.S. counterpart West Texas Intermediate fell 0.54% to $53.04.

General Motors is selling its two major European brands to French automaker PSA Group and pulling back from the world’s third-largest auto market. GM’s Opel and Vauxhall brands, as well as the European arm of its financial division, were valued at roughly $2.3 billion in the transaction.