The Dow fell half a percent. The S&P 500 fell four-tenths of a percent, while the Nasdaq ended about three-quarters of a percent lower – marking the index’s seventh consecutive day of losses, its longest losing streak since November 2016.
A survey by the Institute for Supply Management showed the U.S. services industry rebounded in August for the second month in a row, fueling expectations that the Federal Reserve will continue to raise interest rates to rein in the downturn. inflation.
Kevin Nicholson is Global Head of Fixed Income Investments at Riverfront Investment Group.
“The stock market is trying to figure out whether or not rising yields in the fixed income market are an indication that growth is going to slow or whether the Fed is going to go up 50 basis points or 75 basis points. So I think that Right now the stock market is trying to answer all of these questions, even though most people are confident the Fed is going to hike 75 basis points, but with yields rising as fast as they do on the equity side. fixed income securities, I think it’s debatable whether growth is going to slow more than people initially thought.”
Interest-rate-sensitive stocks of Amazon.com and Microsoft both fell more than 1% as benchmark Treasury yields hit their highest levels since June.
Apple shares also lost ground ahead of the launch of its new line of iPhones at the company’s annual conference scheduled for Wednesday.
Shares of Bed Bath & Beyond fell more than 18% days after the struggling retailer’s chief financial officer fell to his death from a New York skyscraper. An interim chief financial officer was announced on Tuesday.
And shares of Digital World Acquisition Corp fell more than 11% after Reuters reported that the blank check firm that agreed to merge with former US President Donald Trump’s social media company failed to managed to obtain sufficient shareholder support for an extension to complete the transaction.