US Stocks End Sharply Lower Amid Focus On Fed

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2022-08-23 HKT 04:48

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  • All three major Wall Street indexes were ended lower. File photo: AFP

    All three major Wall Street indexes were ended lower. File photo: AFP

Wall Street ended sharply lower on Monday as investors fretted about a US Federal Reserve gathering later this week in Jackson Hole, Wyoming, that is expected to reinforce a strong commitment by the central bank to stamping out inflation.

All 11 S&P 500 sector indexes declined, led lower by consumer discretionary, down 2.84 percent, followed by a 2.78 percent loss in information technology.

Nvidia dropped 4.6 percent and Amazon fell 3.6 percent, while Microsoft and Appleeach lost more than 2 percent as the benchmark 10-year US Treasury yield rose to its highest level since July 21. Technology and other higher-growth stocks often fall when bond yields rise.

The S&P 500 declined 2.14 percent to end the session at 4,137, the Nasdaq declined 2.55 percent to 12,381, and the Dow Jones declined 1.91 percent to 33,063.

After a summer rally on Wall Street ended last week, the S&P 500 remains down about 13 percent so far in 2022, and the Nasdaq is down more than 20 percent.

Focus now 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.

Investors will also be looking for details on the Fed's plans to reduce its nearly $9 trillion balance sheet, a process that started in June. (Reuters)