Stocks fell on Monday as concerns about higher interest rates and tighter monetary policy added fuel to the crash that began in the previous session.
The Dow Jones Industrial Average fell 165 points, or about 0.5%. The S&P 500 and Nasdaq Composite were down 0.6% and 1%, respectively.
Technique The financial sector was the worst performing S&P 500 sector. Dow Inc and 3M led the decline in the Dow Industrials 30-share index.
Wall Street suffered from a Sharp selling on FridayWhen Fed Chairman Jerome Powell’s short, blunt remarks appeared in Jackson Hole, Wyoming, hopes of the central bank to change its aggressive course to raise interest rates in the coming months were dashed.
The Dow fell 1,008 points, or just over 3%, on its worst day since May. The S&P 500 and Nasdaq Composite are down 3.4% and 3.9%, respectively, on their worst days since June. The decline erased August gains for all three averages.
said Sam Stovall, chief investment strategist at CFRA Research. However, he noted, “From a month to August 25, US stocks held up better than investors had expected, especially after such a strong comeback in July and ongoing uncertainties from multiple fronts.”
Meanwhile in Europe over the weekend, European Central Bank Governing Council member Isabel Schnabel warned that central banks must continue to fight inflation – even if it pushes economies into recession.
Next week brings more Fed speeches, including Vice President Lyle Brainard on Tuesday, ahead of the August non-farm payrolls report on Friday.
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