Wall Street hits one month lows on rate hike worries

US stock indexes hit fresh one-month lows on Monday, adding to a sharp selloff last week as investors worried about the Fed’s plan to keep raising interest rates in its fight against inflation even if the cost is an economic slowdown.

At 11:43 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 191.47 points, or 0.59%, at 32,091.93, the S&P 500 (.SPX) was down 29.32 points, or 0.72%, at 4,028.34, and the Nasdaq Composite (.IXIC) was down 145.16 points, or 1.20%, at 11,996.56. The indexes were at their lowest levels since July 28.

Fed Chair Jerome Powell said on Friday the US economy would need tight monetary policy “for some time” before inflation is under control.

Money market traders are pricing in a 70.5% chance of a third straight 75-basis-point interest rate hike next month and expect the Fed funds rate to end the year near 3.7%.

Among the biggest drags on Monday, heavyweight technology and growth stocks such as Apple Inc (AAPL.O), Microsoft Corp (MSFT.O) and Tesla Inc (TSLA.O) fell between 1.4% and 2.4% due to a rise in Treasury yields.