Stocks fell on Monday as traders fought to regain their footing from the prior week’s sell-off amid increasing concerns over rising rates and tighter U.S. monetary policy.
The Dow Industrial Average slid 184.41 points, or 0.57%, to 32,098.99. The S&P 500 slipped 0.67% to 4,030.61, and the Nasdaq Composite slumped 1.02% to 12,017.67.
During Monday’s session, the Dow briefly turned positive after falling more than 300 points earlier in the day.
Tech was the worst-performing S&P 500 sector as rates rose, while energy and utilities outperformed. 3M and Salesforce were the biggest laggards in the 30-stock Dow Industrials. Those losses were mitigated by nearly 1% advances in Walmart and Chevron.
Monday’s stock moves also coincided with the yield on the 2-year Treasury note notching a fresh 15-year high as rate hike fears persisted
Wall Street suffered a sharp sell-off on Friday, when Federal Reserve Chairman Jerome Powell’s short and blunt remarks in Jackson Hole, Wyoming, appeared to extinguish hopes of the central bank changing its aggressive course of rate hikes in the months ahead.
The Dow fell 1,008 points, or just over 3%, its worst day since May. The S&P 500 and Nasdaq Composite fell 3.4% and 3.9%, respectively, their worst days since June. The drop erased August’s gains for all three averages.
“While the aggressive and unrelenting selling from Friday is abating, there isn’t much genuine buy demand – even the bulls want to get through some of this week’s major macro events (including China’s PMIs and the Eurozone CPI on Wed and the US jobs report on Friday) before stepping back in on the long side,” wrote Adam Crisafulli of Vital Knowledge. “The late-summer attendance/volume conditions make the environment even more treacherous than normal, while Sept’s horrible seasonals are just one more factor keeping people on edge.”
Investors are looking ahead to more Fed speeches this week before August’s nonfarm payrolls report on Friday.
Correction: Lael Brainard was slated to speak Monday. A previous version misstated the day.