Worries that the Federal Reserve might not be done raising interest rates led to a decline in stock prices on Wednesday, continuing the slow start to September.
The Dow Jones Industrial Average dropped 198.78 points, or 0.57%, to close at 34,443.19 in the final hour. The Nasdaq Composite fell 1.06% to settle at 13,872.47 and the S&P 500 fell 0.7% to close at 4,465.48.
Risky investments were once more hampered by the increase in Treasury yields. Last time we checked, the yield on the 2-year Treasury note was trading above 5% and had increased by around 6 basis points.
Rate pressure caused technology stocks to perform poorly, and the tech-heavy Nasdaq recorded a third straight day of losses. Nvidia and Apple, which both experienced declines of more than 3%, were the biggest laggards. The Dow was impacted by the declines in Apple, Amgen, and Boeing, which were each down roughly 2%.
Stronger-than-expected economic data on Wednesday, which sparked some concern about the potential of additional increases, coincided with an increase in Treasury yields. Recent indicators of the American economy’s manufacturing and service sectors both indicate that prices are heading in the wrong way.