(Bloomberg) – U.S. stocks pared their decline after San Francisco Fed President Mary Daly warned that excessive tightening could be “unnecessarily painful” for the economy.

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The S&P 500 and Nasdaq 100 fell, but are off session lows. Walt Disney Co. defied the risk sentiment that swept the markets after bringing in former executive Bob Iger to replace his successor Bob Chapek as chief executive.

Crude futures pared losses after Saudi Arabia denied a report that it was discussing an oil production boost for next month’s OPEC+ meeting. The dollar rose as investors searched for safe-haven assets. Treasuries pared their gains.

China experienced its first Covid-related death in nearly six months on Saturday and two more were reported on Sunday. Worsening outbreaks across the country are raising fears authorities may again resort to harsh restrictions. The shutdowns could negatively impact supply chain dynamics and possibly exacerbate inflation problems in economies.

Read more: Oil falls on report Saudi Arabia discusses OPEC increase

This week, traders will also look to the minutes from the Federal Reserve’s latest policy meeting for more clues on the course of rate hikes. Daly said officials will need to be aware of the lags with which monetary policy is transmitted through the economy as they raise interest rates further in order to bring down inflation.

“For the Fed right now, if we’re getting some slowdown in inflation – which appears to be the case – but you don’t see it in the slowdown in services inflation, that’s tied to a market for tense work,” Veronica Clark, an economist at Citigroup, said Monday on Bloomberg Television. “You have to see this loosening in the labor market data.”

While several central bank officials have in recent days reiterated their determination to continue raising rates, they differ on how they will proceed. Atlanta Fed President Raphael Bostic said he favors a slower pace of interest rate hikes, with no more than a full percentage point of additional hikes, to try to secure a soft landing of the economy. Boston Fed President Susan Collins reiterated her view that options are open for the size of December’s interest rate hike, including the possibility of a 75 bp move. base.

Key events this week:

  • Richmond Fed U.S. Manufacturing Index, Tuesday

  • The OECD publishes its Economic Outlook on Tuesday

  • The Fed’s Loretta Mester and James Bullard speak, Tuesday

  • S&P Global PMIs: US, Eurozone, UK, Wednesday

  • U.S. MBA Mortgage Applications, Durable Goods, Initial Jobless Claims, University of Michigan Sentiment, New Home Sales, Wednesday

  • Minutes of the Federal Reserve’s Nov. 1-2 meeting, Wednesday

  • The ECB publishes the minutes of its October policy meeting on Thursday

  • US stock and bond markets are closed for the Thanksgiving holiday, Thursday

  • U.S. stock and bond markets close early on Friday

Some of the major movements in the markets:

Shares

  • The S&P 500 fell 0.2% at 1:14 p.m. PT

  • The Nasdaq 100 fell 0.9%

  • The Dow Jones Industrial Average is little changed

  • The MSCI World index rose 0.6%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.7%

  • The euro fell 0.8% to $1.0244

  • The British pound fell 0.7% to $1.1811

  • The Japanese yen fell 1.2% to 142.05 per dollar

Cryptocurrencies

  • Bitcoin fell 1.6% to $15,986.9

  • Ether fell 3.5% to $1,101.81

Obligations

  • The yield on 10-year Treasury bills fell two basis points to 3.81%

  • Germany’s 10-year yield fell two basis points to 1.99%

  • The UK 10-year yield fell five basis points to 3.19%

Goods

  • West Texas Intermediate crude fell 0.6% to $79.59 a barrel

  • Gold futures fell 0.8% to $1,754 an ounce

This story was produced with assistance from Bloomberg Automation.

–With the help of Isabelle Lee, John Viljoen and Catarina Saraiva.

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