Stocks fell on Tuesday as Wall Street sought to stabilize after another day of declines for stocks.
The Dow Jones Industrial Average fell 320 points, or 1%. The S&P 500 fell 1.2%, and the Nasdaq Composite lost 1.3%.
The declines came after ECB policymaker and Estonian central bank governor Madis Mueller said the central bank should discuss a 75 basis point interest rate hike in September given exceptionally high inflation.
Energy prices fell On Tuesday, with West Texas Intermediate crude futures, the US benchmark for oil, down more than 4.3%. Natural gas futures also fell.
Wall Street is down for the second time in a row, with the Dow Jones losing 184 points on Monday. The S&P 500 fell 0.67% and the Nasdaq Composite fell 1.02%.
The market brought back some of summer gains After recent statements by Federal Reserve officials made it clear that the central bank aims to continue raising interest rates, even if it causes economic pain.
“Investors are accepting that the Federal Reserve is serious about curbing inflation, even as recent data suggests that inflation is beginning to decline,” said Rod von Lipsey, managing director at UBS Private Wealth Management.
“We believe the summer market rally was ephemeral and continue to recommend that investors remain selective and focus on defensive equity sectors such as healthcare and dividend-paying stocks,” von Lipsey added.
“Beer buff. Devoted pop culture scholar. Coffee ninja. Evil zombie fan. Organizer.”