Shares fell Monday as traders battled to bounce back from last week’s sell-off amid mounting concerns about rising interest rates and tightening US monetary policy.
The Dow Industrial Average fell 184.41 points, or 0.57%, to 32,098.99. The S&P 500 fell 0.67% to 4,030.61, and the Nasdaq Composite fell 1.02% to 12,017.67.
During Monday’s session, the Dow briefly turned positive after falling more than 300 points earlier in the day.
Tech was the worst-performing S&P 500 sector as interest rates rose, while energy and utilities outperformed. 3M and Salesforce were the biggest laggards in the Dow Industrials with 30 stocks. Those losses were offset by advances of nearly 1% at Walmart and Chevron.
Monday’s stock moves also coincided with the 2-year Treasury yield hits a new 15-year high while fears of a rate hike persisted
Wall Street suffered a sharp sale on Fridaywhen the short and blunt comments from Federal Reserve Chair Jerome Powell in Jackson Hole, Wyoming, seemed to dash hopes that the central bank would change its aggressive course of rate hikes in the coming months.
The Dow fell 1,008 points, or just over 3%, its worst day since May. The S&P 500 and Nasdaq Composite fell 3.4% and 3.9% respectively, their worst days since June. The drop wiped out August gains for all three averages.
“While Friday’s aggressive and relentless selling wanes, there isn’t much real buying demand — even the bulls are looking to get through some of this week’s key macro events (including China’s PMIs and Euro-zone CPI on Wednesday and the US jobs report on Friday) before I got back on the long side,” wrote Vital Knowledge’s Adam Crisafulli. “The late summer emergence/volume conditions make the environment even more treacherous than usual, while September’s terrible seasonality is another factor that keeps people on their toes.”
Investors look forward to more speeches from the Fed this week ahead of its August nonfarm payrolls report on Friday.
Correction: Lael Brainard was due to speak on Monday. A previous version misrepresented the day.