Stocks close lower on Wall Street on Monday, adding to recent losses | Company


Stocks closed lower on Wall Street, adding to their recent losses as traders realized how determined the Federal Reserve was to keep interest rates high to fight inflation. The S&P 500 fell almost 1% on Monday. Technology companies were the biggest drag on the index. The Nasdaq and the Dow Jones Industrial Average also fell. This week, investors will receive more updates on the economy, including the government’s monthly jobs report on Friday and a reading on consumer confidence on Tuesday from the Conference Board. European markets were also down and Asian markets closed lower overnight. Treasury yields were higher.

THIS IS A BREAKING NEWS UPDATE. AP’s previous story follows below.

NEW YORK — Stocks fell on Wall Street on Monday afternoon as investors remained unnerved by the Federal Reserve’s commitment to keeping interest rates high for as long as it takes to get the economy under control. ‘inflation.

The S&P 500 fell 0.2% at 1:20 p.m. EST. The index fell 3.4% on Friday, its biggest single-day drop since mid-June.

The Dow Jones Industrial Average fell 81 points, or 0.3% to 32,204, after falling 1,008 points on Friday. The Nasdaq fell 0.6%.

Technology stocks were among the largest weightings in the market. Apple fell 1.1%.

Health care stocks also fell sharply. Drug delivery technology company Catalent fell 6.2% after giving investors a disappointing earnings forecast.

Inflation, its impact on the economy and the Fed’s battle plan remain Wall Street’s main concern. Last week, Fed Chief Jerome Powell signaled that the central bank would raise rates next year and keep them high as it tries to suppress demand and lower prices for goods and services.

The last two Fed hikes have been 0.75 points, and Wall Street expects a third such hike in September, according to CME Group. Some investors had hoped the Fed would ease its rate hikes next year if inflation eased. This sentiment led to a rally in equities in July and early August. All three major indices are now down this month.

Energy stocks made gains as US crude oil prices rose 3.5%. Exxon Mobil rose 3.3%.

The 10-year Treasury yield, which tracks expectations for longer-term economic growth and inflation, rose to 3.11% from 3.03% late Friday. The two-year Treasury yield, which tends to track expectations for Fed action, rose to 3.42% from 3.38%.

Investors have been watching economic reports closely to get a better idea of ​​the extent of the economy’s slowdown and whether inflation is starting to ease from the highest levels in four decades.

The Fed’s favorite inflation gauge slowed last month, while other data showed consumer spending slowed. Wall Street will receive several more economic updates this week.

The Conference Board will release its latest reading on consumer confidence on Tuesday.

The government will release its closely watched monthly jobs report on Friday. The job market remained resilient in the context of a general slowdown in the economy. This helped temper fears that the United States was facing a potential recession.

European markets were also down and Asian markets closed lower overnight. Chinese economic data showing a decline in industrial profits indicated that a strong recovery there will take time, amid new restrictions related to COVID-19.


Comments are closed.