Wall Street remains concerned about inflation and the future of the US economy and opened the week with heavy losses

Workers at the New York Stock Exchange (Reuters / Brendan McDermid)

Shares fell sharply in afternoon trading on Wall Street on Monday, Market losses continue amid concerns about inflation and the way ahead for the economy.

The S&P 500 lost 2.1% on Monday, its biggest drop since mid-June.. 95% of benchmark stocks are down. Last week ended in the red, breaking a four-week winning streak.

Meanwhile, the daw Jones Ladder 1.9%The Nasdaq Fell 2.5 percent. Tech companies and retailers suffered some of the biggest losses. Signify Health surged after the Wall Street Journal reported that Amazon would bid for the company. Investors are watching this week’s Federal Reserve conference.

The main indicators showed a strong decline: The Dow Jones lost 1.9%, the Nasdaq fell 2.5%, and the S&P 500 closed 2.1% lower.

Movie players appeared volatile After learning it cinema world Considering filing for Chapter 11 bankruptcy. The sector is still struggling to recover from the virus pandemic.

Among the bright spots in the market sign of healthWhich rose 32.2% after that The Wall Street Journal She stated that Amazon was going to bid for the company.

Bond yields rose. The 10-year Treasury yield rose to 3.03% from 2.97% on Friday.

Market losses generally come after a multi-week rally. Investors are trying to find out Where is the economy headed?Constantly high inflation hurts businesses and consumers. Record inflation has also caused investors to focus on central banks and their efforts to achieve this Combating price hikes without hurting economic growth.

“We’ve been so high and there are reasons why we’re not sure where we’re going”said Tom Martin, portfolio manager at Globalt Investments. “There is still a good chance of a recession.”

The minutes of last week’s Federal Reserve meeting confirmed its plans to raise interest rates further despite signs of weak economic activity. Traders are concerned that drastic measures to slow the economy will go too far and lead to a recession. The US economy actually contracted in the first half of 2022 and Wall Street will have more information on Thursday when the government releases an updated report on the US economy for the second quarter.

Investors are also watching this week’s Federal Reserve conference for signs of further rate hikes in the US to cool rising inflation. The central bank holds its annual meeting in Jackson Hole, Wyoming, on Thursday. Federal Reserve Chairman Jerome Powell is scheduled to speak on Friday morning.

The Federal Reserve holds its meeting after an intense week of economic and trade data that showed inflation continues to weigh on the economy, but consumer spending remains resilient. Lower prices for gasoline and food commodities such as wheat and corn helped relieve some of this pressure. This helped limit the rise in inflation in July, although prices continued to rise.

“I don’t think we are out of danger in terms of inflation,” Martin said. “We still don’t really know what inflation will be like and what the Fed will do.”

(with information from AP)

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