US: Stocks fall after lackluster consumer data
WALL Street stocks resumed their descent on Tuesday, with weak consumer data adding to unease over how elevated interest rates could weigh on growth.
US consumer confidence fell to 103 from 108.7 in August, according to the Conference Board. The report showed a bigger drop than expected, reflecting the drag from higher gasoline and food prices.
Markets have been on defence since last week’s Federal Reserve meeting, in which the central bank held interest rates steady but signaled the possibility of more hikes in 2023.
The three major indices broke a multi-day losing streak on Monday, but found themselves once again in the red a day later.
The Dow Jones Industrial Average fell 1.1 per cent to 33,618.88.
The broad-based S&P 500 tumbled 1.5 per cent to 4,273.53, while the tech-rich Nasdaq Composite Index lost 1.6 per cent at 13,063.61.
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Investors are worried the Fed will keep rates high too long and “break something,” said Art Hogan from B. Riley Wealth Management.
Other sources of angst include a possible government shutdown and the ongoing United Auto Workers strike.
Among individual companies, Amazon shed 4.0 per cent after the US Federal Trade Commission sued the online retail behemoth, charging it with running an illegal monopoly by strong-arming sellers and stifling potential rivals.
Amazon pledged to mount a robust defence, saying the lawsuit “is wrong on the facts and the law.”
Cintas, which provides uniforms and safety and maintenance equipment to businesses, sank 5.3 per cent despite reporting a jump in quarterly profits. Analysts at Briefing.com said the results, while solid, did not match the level of recent reports. AFP
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