Broad decline on Wall Street – Nasdaq fell 2.5 percent

Broad decline on Wall Street - Nasdaq fell 2.5 percent

Wall Street’s rally this summer appears to have faded, and fears of a rate hike are resurfacing.

After a turbulent Monday, it ended with a broad fall for the major indices on Wall Street on the first trading day of the week.

This is how the three major indices on Wall Street ended up:

  • The Dow Jones Industrial Average fell 1.90 percent
  • The Nasdaq tech stock fell 2.55%
  • The broad S&P 500 index fell 2.13 percent

Monday was particularly difficult for the tech-heavy Nasdaq, which fell more than 2% on the first trading day of the week. The decline occurred at the same time that investors feared a tightening of monetary policy by the Federal Reserve (Fed) in the future.

Among the heavyweights that pushed the Nasdaq down, we find Amazon, which opened the trading day with a 2 percent drop. The stock closed down 3.6 percent.

The broad S&P 500 also had a difficult Monday. The index ended down 2.1 percent, the largest decline for the index since mid-June.

Eagerly waiting for the Federal Reserve meeting

On Friday, members of the Federal Reserve will gather in Jackson Hole, Wyoming for an economic policy seminar organized by the Federal Reserve Bank of Kansas Branch annually.

In this regard, investors will turn their eyes and ears toward any statements that Fed members may make. The main focus will be on Central Bank Governor Jerome Powell’s speech on Friday, as the market hopes to get more indications about how aggressive the Federal Reserve will be in raising interest rates going forward.

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– Powell will try to appear hawkish in order to ease inflation expectations and tighten financial conditions. Jay Hatfield, chief investment officer at Infrastructure Capital Management, warned that it is likely to be a negative catalyst for the market.

The news that distinguishes Wall Street

A large Canadian pension fund, PSP Investments, which manages about $180 billion, has reduced its holdings of shares in companies such as Apple, Tesla and Microsoft, while buying more Walmart shares, According to Barron.

Ford’s stake fell 3.03 percent on Monday, after the company was sentenced in fatal accident case. That same evening, news came that Ford would cut 3,000 jobs to fund the transition to the electric vehicle market.

Health platform Signify Health surged 32.03 percent, after Amazon and UnitedHealth ended up in a bidding war for the service, According to CNBC.

Gaining “ten-year” momentum on Monday, the interest rate on 10-year US government bonds rises above three per cent. According to CNBC, this is a result of investors anticipating new signals from the Federal Reserve about future monetary tightening.

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Fall last week

Last week, the Dow was down 0.6 percent overall, while the Nasdaq Composite was down 3.2 percent. The S&P 500 can boast a 1.6 per cent fall.

On Friday, there was a broad drop on Wall Street. The Nasdaq fell by two percent, which was also reflected in the decline in the shares of technology giants Apple and Alphabet, owner of Google. These reduced their market value by 1.5 percent and 2.5 percent, respectively.

Mark Zuckerberg’s Meta stock is also down, in this case, by about four percent. Graphics card company Nvidia fell about 5 percent on Friday.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using the links that lead directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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