by Noel Randewich and Bansari Mayur Kamdar
(Reuters) – The New York Stock Exchange ended lower on Tuesday as investors focused on PMI data for August, which showed a further contraction in economic activity.
The Dow Jones index fell -0.47%, or 154.02 points, to 32,909.59 points.
The broader S&P-500 fell 9.26 points, or -0.22%, to 4,128.73 points.
The Nasdaq Composite fell for its part by 0.27 points (0.00%) to 12,381.30 points.
Activity plunged this month to its lowest level in 18 months, with the composite PMI reading at 45.0 from 47.7 in July, amid weaker demand and monetary tightening against a backdrop of record inflation.
Investors also remain cautious ahead of Friday’s speech by US Federal Reserve (Fed) Chairman Jerome Powell at the annual Jackson Hole symposium.
Traders are divided on whether to raise Fed rates by 50 basis points or 75 basis points in September, after several officials highlighted the Fed’s commitment to fighting inflation.
“The market seems to have realized that the Fed could raise interest rates another 75 basis points in September,” said Jake Dollarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma.
“The market fears that Powell will return to a ‘hawkish’ position.”
The yield on ten-year Treasuries reached its highest level since the end of July.
In stocks, Zoom Video Communications fell after lowering its full-year profit and revenue guidance amid falling demand and intensifying competition.
Macy’s rose after posting quarterly results that beat market expectations.
Palo Alto Networks jumped after the publication of its quarterly results, which exceeded expectations, as well as the announcement of a division by three of the nominal value of its shares.
(With contributions from Devik Jain; French version Camille Raynaud)
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