Stocks fell on Monday as traders struggled to regain their footing from last week’s sell-off, amid growing concerns about rising interest rates and tighter 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.
Technology was the worst-performing S&P 500 sector as prices 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 nearly 1[ads1]% advances in Walmart and Chevron.
Monday’s stock moves also coincided with the yield on the 2-year Treasury hitting a new 15-year high as fears of interest rate hikes persisted.
Wall Street suffered a sharp sell-off on Friday as Federal Reserve Chairman Jerome Powell’s brief and blunt comments in Jackson Hole, Wyoming, appeared to extinguish hopes that the central bank will reverse its aggressive course for rate hikes in the coming months.
The Dow fell 1,008 points, or just over 3%, in 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 fall erased August’s gains for all three averages.
“While the aggressive and persistent selling from Friday is winding down, there isn’t much real buying demand – even the bulls are looking to get through some of this week’s big macro events (including China’s PMIs and Eurozone CPI on Wednesday and the US jobs report on Friday) before going back on the long side,” wrote Adam Crisafulli of Vital Knowledge. “The late summer attendance/volume ratio makes the environment even more treacherous than normal, while September’s terrible seasons are just one more factor keeping people on edge.”
Investors are looking forward to more Fed speeches this week ahead of the August nonfarm payrolls report on Friday.
Correction: Lael Brainard was scheduled to speak Monday. An earlier version misinterpreted the day.