17 hrs ago
Wall Street Slides as Higher Yields and Oil Rise
U.S. stocks fell as September began.
Investors were worried because government bond yields and oil prices were rising.
Higher oil prices can make many goods more expensive.
Reports of new U.S. attacks on Iranian targets added to fears about a wider conflict.
Investors also thought the Federal Reserve might raise interest rates soon.
A government report showed fewer job openings than expected in July.
Other data suggested that factories and home construction were slowing.
Energy companies benefited from higher oil prices.
Many technology, transportation and consumer-related stocks lost value.
The Dow, S&P 500 and Nasdaq fell 0.81%, 0.69% and 0.97%, respectively.
Rising Treasury yields and crude prices pressured stocks at the start of September.
Fresh U.S. attacks on Iranian targets increased geopolitical and inflation concerns.
Markets raised the estimated probability of a 25-basis-point Federal Reserve rate hike next month to 68.2%.
Energy stocks gained, while consumer discretionary, transportation and semiconductor shares declined.
- Who
- U.S. investors, the major stock indexes, the Federal Reserve and governments involved in the conflict with Iran.
- What
- U.S. stocks declined as bond yields and oil prices rose amid geopolitical tensions and expectations of higher interest rates.
- Where
- U.S. financial markets, amid developments involving Iranian targets and the Strait of Hormuz.
- When
- Tuesday, September 1; the article does not specify the year.
- Why
- Investors reacted to rising yields, higher crude prices, possible Federal Reserve rate increases, weaker economic indicators and escalating Middle East hostilities.
Key facts
- Dow Jones Industrial Average
- Fell 431.78 points, or 0.81%, to 52,754.13.
- S&P 500
- Lost 52.88 points, or 0.69%, to 7,633.26.
- Nasdaq Composite
- Dropped 256.93 points, or 0.97%, to 26,113.77.
- Rate-hike probability
- Markets priced in a 68.2% chance of a 25-basis-point Federal Reserve hike at the end of next month's policy meeting, up from 39.6% a week earlier.
- Market leadership
- Energy was the strongest S&P 500 sector, while consumer discretionary suffered the largest percentage decline.
- Transportation stocks
- The Dow Jones Transportation Average fell 2.5%.
- Semiconductor stocks
- The Philadelphia Stock Exchange Semiconductor Index fell 2.5% to a nearly one-month low.
Quotes
Jay Hatfield
Portfolio manager at InfraCap in New York
“We're nearing the fall, and the problem with the fall is you have very few earnings reports. Generally speaking, good news about the stock market comes from the companies, and bad news comes from everything else.”
livemint.com
“We have a very, very hawkish Fed, and they absolutely want to raise rates. They want to demonstrate their independence from the administration.”
livemint.com
Sources
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