Markets Tumble Amid Consumer Worries and Fed Speculations
The Dow Jones and S&P 500 closed lower, retracting from recent highs spurred by China's stimulus package. Concerns over labor market health and upcoming Fed interest rate decisions are shaping investor sentiment. Despite declines in many sectors, tech stocks showed resilience. Eyes are on forthcoming economic indicators and Fed remarks.
The Dow Jones Industrial Average and S&P 500 closed lower on Wednesday, retracting recent record highs that were driven by China's sweeping stimulus package. Investors are now keenly waiting for economic indicators and cues on imminent interest rate cuts.
Despite the downturn, the three main indexes were well-positioned for monthly gains following the Federal Reserve's rate cut on Sept. 18, which bolstered hopes for a soft economic landing. However, a weak consumer sentiment report released on Tuesday spurred concerns regarding labor market health.
'What happened in commodities and basic materials, etc., was quite a reaction to... 'hey, what if China can get growing again?' And that kind of feeds into other areas, and it helps other economies,' said Tom Martin, senior portfolio manager at Globalt in Atlanta. Rising long-term Treasury bond yields have sparked concerns that looser financial conditions may reignite inflation.
(With inputs from agencies.)
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