October 5, 2022

Wall Street wraps up its busy post-summer session in red

Wall Street wraps up its busy post-summer session in red

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  • ISM services sector data beat estimates
  • Bed Bath & Beyond shares plunge after CFO’s death
  • Wall Street is out of declines for three consecutive weeks
  • Dow Jones down 0.55%, Standard & Poor’s 500 down 0.41%, Nasdaq down 0.74%

NEW YORK (Reuters) – Wall Street’s main indexes closed lower on Tuesday, the first session after the US Labor Day and summer holidays, as traders assessed new economic data in choppy trading.

A survey from the Institute of Supply Management (ISM) showed that the US service industry rebounded in August for the second month in a row amid stronger demand and employment growth, while supply bottlenecks and price pressures eased. Read more

However, figures from S&P Global showed that the services sector PMI was below the flash estimates for August.

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The stronger-than-expected US service sector reading reinforced expectations that the Federal Reserve will continue to raise interest rates to tame inflation.

“We’ve made the Fed very dependent on data, so every piece of information that investors come out with will not only look at the absolute level, but try to infer what that means when the Fed meets,” said Carol Schleif. Vice President of Investments at BMO Family Office.

“One of the things that bothers investors is that there is really little to push the markets either up or down aggressively,” she added.

Concerns about energy supplies to Europe and how the COVID-19 shutdowns will affect the Chinese economy also dragged markets down on Tuesday, said Sean Cruz, chief trade analyst at TD Ameritrade. “A lot of the uncertainty and volatility doesn’t come from the United States; it actually comes from abroad.”

Nasdaq high tech (nineteenth) It incurred losses for the seventh day in a row, the longest losing streak since November 2016.

Amazon.com Inc . price sensitive stocks (AMZN.O) and Microsoft Corporation (MSFT.O) It fell 1% as US Treasury yields rose to their highest since June. Apple company (AAPL.O)which will launch new iPhones next Wednesday, lost 0.8.

Traders see a 74% chance of a third consecutive rate hike of 75 basis points at the Federal Reserve’s policy meeting later this month, according to CME. FedWatch Tool.

The focus will be on Federal Reserve Chairman Jerome Powell’s speech on Thursday as well as US consumer price data next week for clues on the direction of monetary policy.

Markets began September on a weak note, extending the slide that began at the end of August, as hawkish rhetoric from Fed policy makers and data pointing to US economic momentum raised fears of higher interest rates.

The S&P is down about 18% so far this year, while the Nasdaq has shed more than 26% as higher interest rates hurt tech giants and growth stocks.

Among Standard & Poor’s main sectors, energy (.SPNY) and communication services (.SPLRCL) It was the worst performing, while the defensive facilities (.SPLRCU) and real estate (.SPLRCR) Has risen.

Dow Jones Industrial Average (.DJI) It fell 173.14 points, or 0.55%, to 3,1145.3 points. Standard & Poor’s 500 (.SPX) It lost 16.07 points, or 0.41%, to 3,908.19 points. And the Nasdaq (nineteenth) It fell 85.96 points, or 0.74%, to 11,544.91 points.

CBOE Volatility Index (.VIX)known as the Wall Street fear gauge, touched a two-month high of 27.80 before closing at 26.91.

Bed Bath and Beyond Inc (BBBY.O) It fell by 18.4% after CFO Gustavo Arnal fell to his death from the Tribeca skyscraper in New York. Read more

Digital World Acquisition Company (DWAC.O) It fell 11.4% after Reuters reported that a blank check buyout company that agreed to merge with former US President Donald Trump’s social media company failed to get enough shareholder support to extend the deal to complete the deal.

Volume on US exchanges was 10.71 billion shares, compared to an average of 10.46 billion for the full session over the last 20 trading days.

Declining issues outnumbered applicants on the New York Stock Exchange by 2.46 to 1; On the Nasdaq, the ratio was 2.12 to 1 in favor of declining stocks.

S&P 500 not hit 52-week highs and 29 new lows; Nasdaq Composite recorded 19 new highs and 317 new lows.

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Reporting by Carolina Mandel, in New York, and additional reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Sumyadb Chakrabarti, Magu Samuel and Richard Chang

Our criteria: Thomson Reuters Trust Principles.