Stocks fall broadly on Wall Street, extending two-day decline | Company

NEW YORK (AP) — Stocks fell on Wall Street on Tuesday, extending two days of recession as investors fear high interest rates will go away anytime soon as the Federal Reserve battles inflation.

The S&P 500 fell 1.3% at 10:40 a.m. EST. The Dow Jones Industrial Average fell 249 points, or 0.8%, to 31,854 and the Nasdaq fell 1%.

Markets have been weaker since Federal Reserve Chairman Jerome Powell indicated on Friday that the central bank stick to your strategy to raise interest rates to try to control the highest inflation in four decades.

A strong labor market report on Tuesday morning further dampened any hopes that the Fed would be able to ease its inflation-fighting policy. The higher rates imposed by the Fed aim to contain inflation by slowing the economy, including the pace of hiring.

The government reported that there had been 11.2 million jobs opened the last day of July. That’s nearly two jobs for every unemployed person, on average. That number was up from 11 million in June, and the June figure was also revised upwards. Another big labor market data point will arrive on Friday when the Labor Department releases its monthly jobs report.

Wall Street fears that the Fed is putting the brakes on an already slowing economy too hard and pushing it into a recession. Rising interest rates also hurt investment prices, especially for more expensive stocks.

Major indexes had gained ground in July and early August on hopes that weaker economic data would prompt the Fed to ease its rate hikes. The central bank has already raised interest rates four times this year and is expected to raise short-term rates by another 0.75 percentage points at its next meeting in September, according to the CME Group.

Investors are watching economic data closely for any further signs of the economy slowing down or inflation slowing or at least staying at its current level. Businesses and consumers have been hit hard by rising prices for everything from food to clothing, but recent drops in gasoline prices have brought some relief.

Consumers regained some confidence in August, according to a Conference Board survey. His the consumer confidence index has increased this month after three consecutive monthly declines. It also rose well above what economists expected.

Tech stocks were prominent in the market. Chipmaker Nvidia fell 1.1%. Energy stocks fell alongside a 4.8% drop in US crude oil prices. Chevron fell 3%. Best Buy was a beacon of hope, gaining 5% after reporting results for its latest quarter that were much better than analysts had expected.

The 10-year Treasury yield rose to 3.13% from 3.11% on Monday evening.

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