Wall Street slumps for 4th straight session on Fed outlook

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, Aug. 22, 2022. REUTERS/Brendan McDermid

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  • Snap jumps as it restructures ad business, lays off staff
  • Bed Bath & Beyond sinks in company overhaul
  • Dow Jones down 0.57%, S&P 500 down 0.45%, Nasdaq down 0.26%

NEW YORK, Aug. 31 (Reuters) – US stocks were lower for the fourth straight session on Wednesday, poised for their weakest August performance in seven years as concerns about aggressive Federal Reserve rate hikes persist.

Pressure was compounded by declines in the technology sector (.SPLRCT), and more specifically chipmakers (.SOX), following soft forecasts from Seagate (STX.O), down 3.42%, and HP Inc , which 7.22% fell.

The three major indices were on track for their biggest monthly percentage drop in August since 2015. After hitting a four-month high in mid-August, the S&P 500 has stumbled in recent weeks, falling more than 7% to the close of the year. Tuesday and through several closely monitored tech support levels.

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Selling pressure mounted after Fed Chair Jerome Powell’s aggressive comments Friday about keeping monetary policy tight “for some time” lowered hopes for more modest rate hikes, with the benchmark index falling more than 5% in the past four years. trading sessions.

“It’s been tough since Chairman Powell’s Jackson Hole speech. We had that huge down day and there was maybe hope that the market might stabilize a little bit, but every little rebound has come under selling pressure,” Yung said. -Yu Ma, chief investment strategist at BMO Wealth Management in Chicago.

“The market is shifting a little bit back to the macro picture, which has now been more or less adjusted to the expectation of more Fed rage and the idea that the economy could slow more than expected. Even the question of corporate earnings is back on the table.”

Loretta Mester, president of the Cleveland Federal Reserve Bank, said Wednesday that the central bank must raise interest rates slightly above 4% early next year and keep them there to bring inflation back to the Fed’s target, and that the risks of a recession have passed the next year or two. read more

The Dow Jones Industrial Average (.DJI) fell 181.55 points, or 0.57%, to 31,609.32; the S&P 500 (.SPX) lost 17.89 points, or 0.45%, to 3,968.27; and the Nasdaq Composite (.IXIC) fell 31.04 points, or 0.26%, to 11,852.09.

Data earlier in the day showed ADP’s private payrolls rose by 132,000 jobs in August, lagging behind economists’ forecast of 288,000 jobs growth, according to a Reuters poll. However, the report was shelved for June and July as the methodology was revised after a poor track record of being in sync with the government salary report. read more

Labor Department job data is expected Friday and is expected to show nonfarm payrolls increased by 300,000 last month, after rising from 528,000 in July. Another strong report is likely to bolster expectations that the Fed will continue with excessive rate hikes after three consecutive 75 basis point hikes.

The Philadelphia SE Semiconductor Index (.SOX) lost 1.37% after Seagate lowered its first quarter earnings estimates, citing macroeconomic concerns forcing cloud companies and PC makers to lower inventory levels. read more

In addition, HP Inc forecast dismal quarterly and annual profits due to slowing PC sales.

Snap Inc (SNAP.N) rose 8.44% after saying it will cut 20% of its workforce, restructure its ad sales unit and halt some projects to focus on improving sales and Snapchat numbers users. read more

Chewy Inc fell 8.50% after the online pet supplies retailer lowered its full-year sales outlook for 2022.

Bed Bath & Beyond Inc (BBBY.O) plunged 21.87% after it said it would close 150 stores, cut jobs and overhaul its merchandising strategy in an effort to redirect its loss-making business. read more

The number of declining issues surpassed those advancing on the NYSE by a ratio of 1.93 to 1; on Nasdaq, a 1.27-to-1 ratio favored decliners.

The S&P 500 made no new 52-week highs and 11 new lows; the Nasdaq Composite recorded 12 new highs and 161 new lows.

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Reporting by Chuck Mikolajczak; adaptation by Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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