Shares fell on Monday as traders struggled to regain their footing after the previous week’s selloff amid growing concerns over rising rates and tightening US monetary policy.
The Dow Industrial Average slipped 184.41 points, or 0.57%, to 32,098.99. The S&P 500 slipped 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.
Technology was the worst performing sector in the S&P 500 as rates rose, while energy and utilities outperformed. 3M and Salesforce were the biggest laggards of Dow Industrials’ 30 stocks. These losses were mitigated by advances of almost 1% on Walmart and Chevron.
Monday’s stock moves also coincided with the yield on the 2-year Treasury note hitting a new 15-year high as fears of rising rates persisted.
Wall Street suffered a sharp sell-off on Friday, when brief and blunt remarks by Federal Reserve Chairman Jerome Powell in Jackson Hole, Wyoming, appeared to dash hopes that the central bank would reverse its aggressive course of rate hikes in the coming months.
The Dow Jones 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 decline erased August’s gains for all three averages.
“While Friday’s aggressive and relentless selling wanes, there isn’t much real buying demand – even the bulls want to push through some of the major macro events this week (including the Chinese PMI and the Eurozone CPI on Wednesday and US jobs report on Friday) before moving back to the long side,” wrote Adam Crisafulli of Vital Knowledge. “The late summer attendance/volume conditions make the environment even more treacherous than normal, while the horrid September seasons are just another factor keeping people on edge.”
Investors are eagerly awaiting more speeches from the Fed this week before Friday’s August nonfarm payrolls report.
Read the coverage of the mercado de hoy en español here.
Correction: Lael Brainard was scheduled to speak on Monday. A previous version incorrectly indicated the day.