The United States (US) dollar is again the choice of investors with market sentiment turning risk-off after the news in China upset the world.
The failure of the Chinese government's zero-Covid policy to reduce the number of infections has sparked protests and confrontations between residents and authorities, benefiting the greenback and Treasury yields.
It indirectly spurred a sell-off in equities with the Dow Jones Industrial down 1.45% at 33,849.46 while the S&P 500 lost 1.54% at 3,953.95 and the Nasdaq Composite fell 1.58% at 11,049.50.
MSCI's gauge of worldwide shares fell 1.42% and shares in emerging markets lost 1.13%.
Asian trading saw Japan's Nikkei 225 down 0.84%, Topix down 0.85%, Australia's S&P/ASX 200 down 0.2%, South Korea's Kospi slightly positive and MSCI's broadest Asia Pacific index down 0.12%.
Commenting on the market situation is Edward Jones investment strategist Mona Mahajan by underlining the news of protests in China as the main reason for the change in sentiment.
He also stated that the factor is that investors are waiting for comments from Federal Reserve (Fed) officials regarding the prospect of rate hikes, not giving an advantage to the risky asset market.
For now investors expect the central bank to maintain aggressive hikes based on recent comments from Fed President St. Louis, James Bullard who stated that the increase should continue until next year.
Elsewhere, the dollar index was up 0.339% while the Euro was down 0.59% at $1.0334 while the Yen was up 0.14% against the greenback at $138.90 and Sterling was down 1.17% at $1.1951.
The benchmark 10-year note was down 1.3 basis points at 3.689% from 3.702% last Friday.