Wall Street’s main indexes fell at the close, Tuesday, in the first trading session following the Labor Day and summer holidays in the United States, as traders assessed new economic data in choppy trading.
A survey from the Institute of Supply Management showed the US service sector rebounded in August for the second month in a row amid stronger growth in orders and employment as supply bottlenecks and price pressures eased.
But figures from Standard & Poor’s Global showed that the services PMI was lower than the initial estimates for August.
The data that came in stronger than expected for the service sector in the United States raised expectations that the Federal Reserve (the US central bank) will continue to raise interest rates to reduce inflation.
The Nasdaq fell for the seventh day in a row, the longest losing streak since November 2016.
Shares of interest-sensitive Amazon and Microsoft fell regarding 1% as US Treasury yields rose to their highest levels since June.
Shares of Apple Inc., which will launch new iPhones next Wednesday, also posted a loss of 0.8 percent.
CME’s Fidwatch Tool said traders saw a 74 percent chance of a third straight rate hike of 75 basis points at the Federal Reserve’s policy meeting later this month. The Standard & Poor’s Index is down nearly 18 percent this year, while the Nasdaq is down more than 26 percent following higher interest rates hurt tech giants and growth stocks.
Energy and telecoms services were among the worst performing major sectors on Standard & Poor’s, while defense utilities and real estate stocks rose.
The Standard & Poor’s 500 index fell 16.07 points, or 0.41 percent, to close at 3908.19 points, while the Nasdaq Composite Index fell 85.96 points, or 0.74 percent, to 11,544.91 points. The Dow Jones Industrial Average fell 173.14 points, or 0.55 percent, to 3,1145.3 points.
(Archyde.com)
