Tuesday saw a decline in stocks as Wall Street began to feel the effects of the September selling pressures after the previous session’s gains.
191 points, or 0.5%, were lost by the Dow Jones Industrial Average. The Nasdaq Composite fell 0.8%, while the S&P 500 fell 0.7%.
Jamie Dimon, CEO of JPMorgan Chase, expressed concern that interest rates could need to increase higher in order to contain inflation in remarks that added to the pessimistic mood on Tuesday. In the premarket, bank stock prices declined, with the SPDR S&P Regional Banking ETF dropping 0.7%. Shares of Morgan Stanley plummeted by about 1% while those of Wells Fargo declined by more than 1%.
The market would continue to lose money as a result of their actions. The S&P 500 and Dow had lost 3.8% and 2.1%, while the Nasdaq Composite had down 5.4% as of the start of trading on Tuesday. The Federal Reserve’s admonition that it expects fewer rate cuts in 2019 is one of the factors driving stocks lower this month. the benchmark 10-year Treasury yield reached levels not seen since 2007 as a result of the news.
As politicians attempt to avoid a government shutdown that could occur as early as October 1 if Congress is unable to reach agreement on a budget measure, investors are also negotiating in Washington this week.