Dow Experiences Worst Day Since June

The Dow Jones Industrial Index sharply fell, on Monday, in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street.

The Dow fell 643.13 points, or 1.91%, to 33,063.61. The S&P 500 dropped 2.14% to 4,137.99, and the Nasdaq Composite tumbled 2.55% to 12,381.57, respectively. It was the worst day of trading since June 16 for the Dow and the S&P 500.

Those losses come on the back of a losing week, which snapped a four-week winning streak for the S&P 500. Still, the broader market index remains about 13% above its June lows.

Investors are anticipating what could be a volatile week of trading ahead of Fed Chair Jerome Powell’s latest comments on inflation at the central bank’s annual Jackson Hole economic symposium.

The market is dropping down as several voices assert that the Fed has to be more aggressive to slow the economy down further to bring inflation back down. Tech stocks declined on concerns over more aggressive rate hikes from the Fed. Amazon fell 3.6%. Semiconductor stocks dropped with Nvidia down about 4.6%. Shares of Netflix were roughly 6.1% lower following a downgrade to sell from CFRA.

The Dow Jones fell 643.13 points, or 1.91%, to 33,063.61. The S&P 500 dropped 2.14% to 4,137.99 and the Nasdaq Composite tumbled 2.55% to 12,381.57, respectively. It was the worst day of trading since June 16 for the Dow and the S&P 500.
All 11 sectors in the S&P 500 were in the red on Monday. Consumer discretionary, communication services and information technology were the biggest losers, as investors dumped shares of cyclical and growth stocks. The sectors were last down 2.8%, 2.7% and 2.6%, respectively.