Major Averages Close at Least 1% on Eve of Fed Meeting
Stocks tumbled on Tuesday as the selloff on Wall Street mounted and investors braced for another large rate hike due out Wednesday from the Federal Reserve. The Dow Jones Industrials stumbled 313.45 points, or 1%, to conclude Tuesday at 30,706.23. The SP 500 retreated 43.96 points, or 1.1%, to 3,855.93. The NASDAQ Composite let go of 109.97 points, or 1%, to 11,425.05. Meanwhile, Ford shares slumped after announcing that supply chain issues would cost an extra $1 billion in the third quarter. The Federal Open Markets Committee begins its September meeting on Tuesday, where central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools. Housing market data released Tuesday showed an unexpected jump in starts for August, although building permits saw the biggest decline since April 2020.
Major Averages Close at Least 1% on Eve of Fed Meeting
Stocks tumbled on Tuesday as the selloff on Wall Street mounted and investors braced for another large rate hike due out Wednesday from the Federal Reserve. The Dow Jones Industrials stumbled 313.45 points, or 1%, to conclude Tuesday at 30,706.23. The SP 500 retreated 43.96 points, or 1.1%, to 3,855.93. The NASDAQ Composite let go of 109.97 points, or 1%, to 11,425.05. Meanwhile, Ford shares slumped after announcing that supply chain issues would cost an extra $1 billion in the third quarter. The Federal Open Markets Committee begins its September meeting on Tuesday, where central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools. Housing market data released Tuesday showed an unexpected jump in starts for August, although building permits saw the biggest decline since April 2020.