The summer rally pulled back further after the Dow Jones Industrial Average plunged more than 600 points, and notched its worst day since June. Investors expect that Federal Reserve Chairman Jerome Powell’s speech at the annual Jackson Hole symposium on Friday could point to more interest rate hikes ahead, after recent hawkish comments from other Fed officials. “When you see the market right now dropping down like this, this is the market saying the Fed has to be more aggressive to slow the economy down further” if they want to bring inflation back down, said Robert Cantwell, portfolio manager at Upholdings.
It was the worst day of trading since June 16 for the Dow and the S&P 500. |
All 11 sectors in the S&P 500 were in the red with consumer discretionary, information technology and communication services the biggest losers.
Investors retreated from growth and tech stocks. Shares of megacap tech stocks such as Alphabet, Apple and Meta Platforms were each down more than 2%. Amazon was down 3.6%. Semiconductor stocks were also down with Nvidia shares roughly 4.6% lower. |
