te Dow, S&P 500 end down as US interest-rate worries mount, bank shares slip | Zee Business

Dow, S&P 500 end down as US interest-rate worries mount, bank shares slip

US stock market: The Dow and S&P 500 ended slightly lower on Tuesday as investors stayed worried the Federal Reserve will keep interest rates higher for longer and as banks shares eased. 

Dow, S&P 500 end down as US interest-rate worries mount, bank shares slip
US stock market: The Dow and S&P 500 ended slightly lower on Tuesday. Image: Reuters

US stock market: The Dow and S&P 500 ended slightly lower on Tuesday as investors stayed worried the Federal Reserve will keep interest rates higher for longer and as banks shares eased. The Nasdaq finished barely in the green. The financial sector fell 0.9 per cent and was the biggest drag on the S&P 500. An S&P downgrade of credit ratings of multiple regional U.S. lenders weighed on banks shares, with the KBW regional banking index (.KRX) sliding 2.7 per cent and the S&P 500 banks index (.SPXBK) falling 2.4 per cent.

Investors hope for clarity on the rate outlook when Fed Chair Jerome Powell speaks at a meeting of central bankers on Friday in Jackson Hole, Wyoming. "Rates have backed up pretty good again, so that's kind of putting somewhat of a damper on stocks," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. The benchmark 10-year Treasury yield hit almost 16-year highs overnight on the view the Fed could keep rates higher for longer. Higher borrowing costs can slow spending by businesses and consumers.

Investors hope for clarity on the rate outlook when Fed Chair Jerome Powell speaks at a meeting of central bankers on Friday in Jackson Hole, Wyoming. "Rates have backed up pretty good again, so that's kind of putting somewhat of a damper on stocks," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. The benchmark 10-year Treasury yield hit almost 16-year highs overnight on the view the Fed could keep rates higher for longer. Higher borrowing costs can slow spending by businesses and consumers.

TRENDING NOW

Shares of Nvidia hit an all-time high of $481.87 early but were down 2.8 per cent on the day. Department stores were among the day's biggest decliners. Macy's (M.N) sank 14.1 per cent after the chain warned of weak consumer spending through the crucial holiday shopping season. Shares of Kohl's Corp. (KSS.N) were down 10.3 per cent while Nordstrom Inc (JWN.N) was down 9.8 per cent. Volume on U.S. exchanges was 9.38 billion shares, compared with the 10.97 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.43-to-1 ratio favored decliners. The S&P 500 posted 4 new 52-week highs and 13 new lows; the Nasdaq Composite recorded 39 new highs and 221 new lows.

 

Written By: Reuters
Updated: Wed, Aug 23, 2023
08:45 am
New Delhi, Reuters
RELATED NEWS
Wall Street Week Ahead: High market hopes raise stakes as US stocks face inflation data, earnings Wall Street Week Ahead: High market hopes raise stakes as US stocks face inflation data, earnings
S&P 500 extends streak of record highs; Tesla tumbles S&P 500 extends streak of record highs; Tesla tumbles
Stocks climb on positive earnings, economic data; yields rise Stocks climb on positive earnings, economic data; yields rise
S&P 500 notches third straight record high close S&P 500 notches third straight record high close
S&P 500 ends with record high for 2nd session in row S&P 500 ends with record high for 2nd session in row

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x