The stock volatility index, Wall Street’s fear gauge, hit a seven-week high of 27.67.
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Wall Street closes lower as concerns regarding rate hikes persist
US stocks closed lower on Monday, adding to their sharp losses last week, as concerns persisted regarding the Federal Reserve’s determination to raise interest rates to fight inflation even as the economy slows.
Federal Reserve Chairman Jerome Powell said on Friday that the US economy will need tight monetary policy “for some time” before inflation can be brought under control, dashing hopes that the central bank in the world’s largest economy may turn to quieter increases in interest rates. After recent data indicated that price pressures had reached a peak.
The Standard & Poor’s 500 recovered from session lows that put it at its lowest level in a month, but the benchmark index recorded its biggest two-day drop in percentage terms in two and a half months.
The stock volatility index, a measure of fear on Wall Street, hit a seven-week high of 27.67.
According to preliminary data, the Standard & Poor’s 500 ended the trading session down 28.04 points, or 0.69 percent, to 4029.62 points, while the Nasdaq Composite Index fell 129.90 points, or 1.07 percent, to close at 111.81 points, and the Dow Jones Industrial Average fell 183.01 points, or 0.57. percent, to 32,100.24 points.
And major technology stocks that are sensitive to interest rates, such as Apple and Microsoft, were among the biggest losers as bond yields rose.
