At the close of trading, the Dow Jones Industrial Average fell 308.12 points (0.96%) to 31,790.87. The S&P 500 Index fell 44.45 points, or 1.1%, to 3986.16. The tech-heavy Nasdaq Composite Index fell 134.53 points, or 1.12%, to 11,883.14.
Stocks fell on expectations that the US Federal Reserve (Fed) would continue to tighten monetary policy aggressively. Federal Reserve Chairman Jerome Powell’s speech at last Friday’s Jackson Hole Economic Symposium was more hawkish than investors liked, suggesting the Fed will continue to aggressively raise rates and stay high for the long term. It suggests that interest rates are likely to hold.
Fed officials have reiterated their commitment to defeating inflation, though they remain vague about how much policy moves they will make next month.
New York Fed President John Williams said interest rates need to stay in the restrictive zone for some time, adding that this could continue until 2023.
Energy stocks fell sharply as oil prices plummeted. Steel stocks also saw significant weakness. Gold stocks, computer hardware stocks and transportation stocks also fell sharply.
Economic News: The Conference Board released a report on Tuesday showing consumer confidence jumped to 103.2 in August from a downwardly revised 95.3 in July.
Another report from the Department of Labor said the number of vacancies on the last working day of July was little changed at 11.2 million.
Among India’s ADRs, Dr Reddy’s Labs rose 0.83% to $52.41 and Azure Power Global fell 26.32% to $4.31. WNS Holdings fell 0.7% to $84.83 and Wipro fell 0.2% to $5.02. HDFC Bank rose 1.05% to $61.34 while INFOSYS rose 0.2% to $18.43. Tata Motors increased 1.4% to $28.99 and ICICI Bank increased 2.2% to $21.94.
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