October 1, 2022

The Dow Jones fell 300 points as the heavy selling continued on Wall Street

The Dow Jones fell 300 points as the heavy selling continued on Wall Street

Stocks fell on Monday as concerns about rising interest rates and tight monetary policy added fuel to the crash that began in the previous session.

The Dow Jones Industrial Average is down 300 points, or about 1%. The S&P 500 and Nasdaq Composite were down 0.95% and 1.2%, respectively.

The technology and finance sector was the worst performing segment of the S&P 500. Dow Inc and 3M led the decline in the Dow Industrials 30-share index.

Wall Street suffered from a Sharp selling on FridayWhen Federal Reserve Chairman Jerome Powell’s short, blunt remarks appeared in Jackson Hole, Wyoming, hopes of the central bank to change its aggressive course to raise interest rates in the coming months were dashed.

The Dow fell 1,008 points, or just over 3%, on its worst day since May. The S&P 500 and Nasdaq Composite are down 3.4% and 3.9%, respectively, on their worst days since June. The decline erased August gains for all three averages.

“From the month to date through August 25, US stocks held up better than investors had expected, especially after such a strong return in July and ongoing uncertainties on several fronts,” said Sam Stovall, chief investment analyst at CFRA Research. “In the near-term at least, pain will be the name of the game. While a test of the June 16 low may be in the works now, we do not anticipate a lower low for the S&P 500.”

Meanwhile in Europe over the weekend, European Central Bank Governing Council member Isabel Schnabel warned that central banks must continue to fight inflation — even if it pushes economies into recession.

Next week brings more Fed speeches, including Vice Chairman Lyle Brainard on Tuesday, ahead of the August Nonfarm Payrolls report on Friday.