Home Business Wall Street is in the red as Fed worries persist

Wall Street is in the red as Fed worries persist


Content of the article

NEW YORK — Wall Street’s major indexes fell in a volatile session on Tuesday as traders assessed fresh economic data after the U.S. Labor Day holiday.

The Institute for Supply Management (ISM) survey showed that the U.S. services industry expanded for a second month in a row in August amid stronger growth in orders and employment, while supply bottlenecks and price pressures eased.

Content of the article

However, S&P Global numbers showed that the services sector PMI missed initial estimates for August.

Advertising 2

Content of the article

Stronger-than-expected readings in the US services sector fueled expectations that the Federal Reserve will continue to raise interest rates to tame inflation.

“The Fed has made us very data dependent, so every piece of information that comes out is going to be looked at by investors not only in absolute terms, but what that means at the Fed meeting,” said Carol Schleif, associate director of investments at the family office. BMO.

“One of the things that confuses investors is that there really isn’t much that can push the markets either up or down,” she added.

The Nasdaq technology index lost a seventh straight day, in what could be its longest losing streak since November 2016.

Advertising 3

Content of the article

Rate-sensitive Amazon.com Inc and Microsoft Corp fell more than 1% as benchmark U.S. Treasury yields rose to their highest levels since June. Apple Inc, which will release new iPhones next Wednesday, fell nearly 1%.

Traders see a 74% chance of a third rate hike of 75 basis points at the Fed’s meeting later this month, according to CME’s FedWatch Tool https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html?redirect =/trading/interest-rates/fed-funds.html.

Focus will be on Fed Chairman Jerome Powell’s speech on Thursday, as well as US consumer price data next week for clues on the path of monetary policy.

Markets started September on a weak note, extending a slide that began in late August, when dovish comments from Fed chiefs and data pointing to a buoyant US economy stoked fears of aggressive interest rate hikes.

Advertising 4

Content of the article

The benchmark S&P 500 index closed at a six-week low on Friday, as concerns over Europe’s gas crisis overshadowed relief from monthly jobs data that indicated a modest easing of wage pressures. The index is down nearly 18% this year, while the Nasdaq is down nearly 26% as rising interest rates hurt tech and rising stocks.

Among the S&P’s major sectors, consumer discretionary and telecommunications fell the most, while defensive utilities and real estate rose.

As of 2:44 p.m. ET, the Dow Jones Industrial Average was down 160.03 points, or 0.51%, at 31,158.41; The S&P 500 lost 14.97 points, or 0.38%, to 3,909.29; and the Nasdaq Composite was down 77.97 points, or 0.67%, at 11,552.90.

The CBOE Volatility Index, known as Wall Street’s fear gauge, rose to 26.43.

Advertising 5

Content of the article

Bed Bath & Beyond Inc fell 17.3% after Chief Financial Officer Gustavo Arnal fell to his death from New York’s Tribeca skyscraper.

Digital World Acquisition Corp tumbled 15.3% after Reuters reported that the blank check acquisition firm that agreed to merge with former US President Donald Trump’s social media company failed to garner enough shareholder support to renew the deal.

Declining issues outnumbered advancing ones on the NYSE by a ratio of 2.47 to 1; on the Nasdaq, a 2.03-to-1 ratio favored decliners.

The S&P 500 posted no new 52-week highs and 27 new lows; The Nasdaq Composite recorded 16 new highs and 282 new lows. (Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; and Carolina Mandl in New York Editing by Saumyadeb Chakraborty, Maju Samuel and Richard Chang)



Postmedia strives to maintain a lively but civil forum for discussion and encourages all readers to share their views on our articles. Comments can take up to an hour for moderation before they appear on the site. We ask that you keep your comments relevant and respectful. We’ve enabled email notifications — you’ll now receive an email when you get a reply to your comment, there’s an update in a comment thread you’re following, or when a user you’re following leaves a comment. Visit our Community Rules for more information and details on how to set up yours email settings.

Previous articleCBN summons debtors of anchor borrowers –
Next articleIndia’s first Covid-19 nasal vaccine has received DCGI approval for emergency use