Nasdaq falls for fourth consecutive day as Wall Street fears rate hikes: live updates

The S&P 500 and Nasdaq Composite fell on Thursday as concerns resurfaced over the direction of the Federal Reserve’s interest rate policy and whether policymakers will hike again this year. The tech-savvy Nasdaq plummeted for the fourth day, shedding 0.9%, while the S&P index fell 0.2%.

The Dow Jones Industrial Average broke the sell-off up 105 points, or 0.3%. Chris Zaccarelli, the chief investment officer at Independent Advisor Alliance, remarked that despite widespread expectations for the Fed to remain unchanged throughout the remainder of the year, there remains the possibility of a couple of rate increases in the future.

“Taking all factors into account, it’s somewhat negative for the stock market that was expecting this from the Fed this year.” Shares of Apple fell 3% after Bloomberg News reported that China plans to extend its iPhone ban to companies and expand government agencies. Technology and semiconductor stocks lagged, with Tesla, Nvidia, and Advanced Micro Devices all falling across two channels.

Macroeconomic data released on Thursday, including lower-than-expected jobless claims, helped fuel fears that a still-strong job market could make the Federal Reserve think twice before easing tightening monetary policy. Weekly jobless claims came in at 216k versus the Dow Jones forecast of 230k, while labor costs rose more than expected in the second quarter.

Coupled with the recent surge in energy prices, a strong labor market will increase the need for the Fed to act and potentially approve more hikes, Zaccarelli said.
While 93% of traders expect a lull at the Federal FOMC’s September meeting, increases in futures are not out of the question. Expectations for another rate hike in November are 45% according to the ECM Fed Watch tool.

Dealers also looked at the current business development reports. C3.ai fell 14.0% and reported lower-than-expected gross margin in its most recent quarter, while ChargePoint Holdings fell 13.0% and missed revenue estimates.

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