The US markets ended deeply in red with Nasdaq settling cut of over two percent, magnifying their previous session’ losses, amid on concerns about the outlook for interest rates. Traders looked ahead to the economic symposium in Jackson Hole, Wyoming this week. Focus is on Fed Chair Jerome Powell’s speech on Friday at the central banking conference in Jackson Hole for further cues on how aggressively the Fed is likely to be with future interest rate hikes. There is expectation that Powell is going to try to sound hawkish to tamp down inflationary expectations and tighten financial conditions. So that’s most likely going to be a negative catalyst for the market.
Shares from across several sectors reeled under severe selling pressure. Tech stocks declined on concerns over more aggressive rate hikes from the Fed. Financial, airline and energy stocks were among the other prominent losers. Stock specific developments Netflix shares plunged more than 6 percent after CFRA downgraded the stock's rating, citing concerns about a likely drop in company's earnings in the second half of the current financial year. Microsoft, Meta Platforms, Alphabet, Intel, Apple, IBM and Cisco Systems declined sharply. Ford shares plunged after the company said it will lay off 3,000 workers to fund its shift to electric vehicles. Visa, Goldman Sachs, American Express, Home Depot, 3M, Caterpillar, JP Morgan Chase and Caterpillar also ended with sharp losses.
Dow Jones Industrial Average slipped 643.13 points or 1.91 percent to 33,063.61, Nasdaq fell 323.64 points or 2.55 percent to 12,381.57 and S&P 500 was down by 90.49 points or 2.14 percent to 4,137.99.
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