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The S&P 500 fell seven-tenths of a percentage point Monday. The Dow Jones Industrial Average and the Nasdaq also lost one point or less.
The losses add to larger declines last week, when the U.S. market had its worst week since mid-June.
Why the downturn? On Friday, Federal Reserve chair Jerome Powell announced plans to continue steep interest rate hikes.
The Fed’s last two increases were three-quarter point hikes. Many on Wall Street expect another such bump in September. Powell said the U.S. stock and labor markets will likely take a hit when interest rates go up, but the economic pain is necessary to curb inflation.
This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.
Tags: Dow Jones Industrial Average Federal Reserve inflation Jerome Powell Nasdaq S&P 500 Wall Street
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