Technology companies led shares lower on Wall Street on August 22 as markets absorbed recent gains in stocks and growing expectations that the Federal Reserve will cut interest rates.
vriefing.com analyst Patrick O’Hare described the drop as “a bit of natural consolidation in a thinly traded market” after the market’s rally in recent days.
O’Hare also pointed to relatively good US service sector data for August, which could reduce the likelihood of a larger fifty percent rate cut at the Fed’s September meeting.
Futures markets are betting on a drop of a quarter point.
The Dow Jones industrial average fell 0.4% to 40,712.78 points.
The broad S&P 500 lost 0.9 percent to 5,570.64, while the tech-heavy Nasdaq Composite fell 1.7 percent to 17,619.35.
Evidence of a slowing US labor market, as well as easing inflation, raised expectations for a rate cut by the Fed.
Fed President Jerome Powell is to deliver a speech on August 23 at a meeting of central bankers in Wyoming. I BGNES
2024-08-23 04:40:34
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