S&P 500 ends at lowest since June 1 as data fuels rate worries

    Published on:

    • U.S. job openings unexpectedly increase in August
    • Amazon and Microsoft fall as UK regulators seek investigation
    • Indices: Dow down 1.3%, S&P 500 down 1.4%, Nasdaq down 1.9%.

    NEW YORK (Reuters) – The S&P 500 index rose in June on Tuesday as economic data underlined the view that the U.S. Federal Reserve may need to keep interest rates high. The stock closed at its lowest price since the 1st.

    The Dow turned negative for the year for the first time since June and closed at its lowest level since May 31st. The Nasdaq also closed at its lowest level since May 31st.

    U.S. job openings unexpectedly rose in August, data showed, raising concerns about a tight labor market ahead of Friday’s key U.S. monthly jobs report.

    Investors continue to keep an eye on benchmark U.S. Treasury yields, which hit a 16-year high on Tuesday.

    “The scenario that most investors had in mind was that the Fed would eventually have to lower short-term interest rates, and we would have an advantage,” said Rick Meckler, a partner at Cherry Lane Investments, a family investment firm in New Vernon. “This means that we will return to a stable interest rate environment.” , New Jersey.

    “But investors are now looking at a different scenario: longer interest rates.”

    Higher borrowing costs are negative for businesses and consumers.

    All sectors in the S&P 500 index fell on the day except one sector, Utilities (.SPLRCU), driven by declines in Consumer Discretionary (.SPLRCD) and Technology (.SPLRCT). Growth companies tend to be hit hardest by rising yields.

    Traders work on the floor of the New York Stock Exchange (NYSE) on September 28, 2023 in New York City, USA.Reuters/Brendan McDiarmid/File Photo Obtaining license rights

    The Dow Jones Industrial Average (.DJI) fell 430.97 points (1.29%) to 33,002.38, the S&P 500 (.SPX) fell 58.94 points (1.37%) to 4,229.45, and the Nasdaq Composite Index (.IXIC) fell 248.31. Points dropped. 13,059.47, 1.87%.

    The CBOE Volatility Index (.VIX), Wall Street’s “fear gauge”, closed at its highest level since May 24th.

    Atlanta Fed President Rafael Bostic said there is no urgency for the central bank to raise rates again, but it will likely take a “long time” before a rate cut is appropriate. Cleveland Fed President Loretta Mester said she is open to raising rates again as a possibility at the next board meeting.

    Shares of (AMZN.O) and Microsoft (MSFT.O) rose after Reuters reported that British media regulator Ofcom will pursue an antitrust investigation into the companies’ dominance in Britain’s cloud computing market. It fell as a result.

    As investors prepare for U.S. companies to begin reporting their quarterly results in the coming weeks, some are hoping the results will provide another round of positive news for the market.

    The Dow Jones Industrial Average has fallen 0.4% since the beginning of the year, while the Nasdaq is up about 25% since Dec. 31, after a rally driven by enthusiasm for artificial intelligence.

    Volume on U.S. exchanges was 11.16 billion shares, with an average of 10.57 billion shares over the past 20 trading days.

    Declining issues outnumbered advancing issues on the New York Stock Exchange by a 5.61-to-1 ratio. On the Nasdaq, a 3.52-to-1 ratio favored declining stocks.

    The S&P 500 posted 1 new 52-week high and 63 new lows. The Nasdaq Composite recorded 15 new highs and 439 new lows.

    Report by Caroline Valetkevich. Additional reporting by Ankika Biswas and Shashwat Chauhan in Bangalore Edited by Vinay Dwivedi, Maju Samuel, Richard Chang

    Our standards: Thomson Reuters Trust Principles.

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