Stocks fall sharply as market volatility continues | national
Stocks fell sharply on Wall Street on Tuesday, continuing a volatile trading streak that sent markets swinging between steep losses and gains as investors weigh several threats.
Persistently rising inflation has hammered businesses and consumers with higher costs, and prices and investors are jittery over the Federal Reserve’s plan to raise interest rates as a countermeasure. The virus pandemic still hangs over the economy and threatens to stall progress with each new wave.
More recently, a potential conflict between Russia and Ukraine threatens to further drive up energy prices while forcing more countries to focus on war rather than inflation and COVID-19.
The S&P 500 fell 2.5% at 10:02 a.m. EST. The Dow Jones Industrial Average fell 712 points, or 2.1%, to 33,656 and the Nasdaq fell 2.8%.
The major indices had a similar start to trading on Monday and were down most of the day, but a late buying spree pushed them to a higher close.
Tech stocks again led the losses as investors worried about rising interest rates. Higher interest rates tend to make stocks of high-flying technology companies and other expensive growth stocks less attractive.
Retailers, banks and communication companies also fell. Utilities and other sectors considered less risky are doing better than the rest of the market.
Bond yields were stable. The 10-year Treasury yield fell to 1.73% from 1.74% on Monday evening.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.