US stocks slide as investors worry about Fed policy tightening

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U.S. stocks ended lower on Wednesday as investors continued to fret over the prospect of tougher policy from the Federal Reserve.

The Dow Jones Industrial Average fell nearly 1% to 31,510.43, with the S&P 500 down 0.8% to 3,955.00 and the Nasdaq Composite down 0.6% to 11,816.20 , despite all the indices trading earlier in the session. For the month, the Dow Jones fell 4%, the S&P 500 fell 4.2% and the Nasdaq Composite fell 4.6%.

The Communication Services sector finished nearly flat, while Materials and Consumer Discretionary were the biggest decliners.

The US 10-year rate climbed 7.3 basis points to 3.18%.

West Texas Intermediate futures fell 3.1% to $88.79 a barrel. Total crude oil inventories fell by 6.4 million barrels in the week ended August 26, as commercial oil inventories fell by 3.3 million barrels and U.S. Strategic Petroleum Reserve inventories by 3.1 million barrels. Gasoline inventories fell while distillate imports were little changed.

The ADP jobs survey showed an increase of 132,000 private jobs for the month of August, missing the market consensus of 275,000, according to a note from DA Davidson. ADP said the data suggests companies are becoming more conservative in their pace of hiring. Service sectors added 110,000 jobs, led by a 96,000 increase in leisure and hospitality and a 54,000 increase in trade, transport and utilities.

Mortgage applications continued to fall last week as rates hit their highest levels since mid-July, while refinancing and home buying activity fell, the Mortgage Bankers Association said on Wednesday. . The composite market index, which measures loan applications, fell 3.7% for the week ended Aug. 26 on a seasonally adjusted basis, after falling 1.2% the week before.

In corporate news, Bed Bath & Beyond (BBBY) announced measures to cut costs, including store closures and job cuts, while forecasting a deeper than expected drop in second-quarter comparable sales. fiscal quarter. Shares fell 21%, the Nasdaq Composite’s second-worst performance.

Shares of PVH (PVH) plunged 10.5%, the biggest drop in the S&P 500, after the owner of brands Calvin Klein and Tommy Hilfiger cut its 2022 profit forecast and plans to cut its global workforce by 10% by the end of next year.

Gold was down nearly 1% at $1,722.00 per troy ounce, and silver was down 2.3% at $17.86 per ounce.

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