Stock market today: Wall Street drops as its September slump gets even worse
Wall Street is back to falling as its September swoon worsens
NEW YORK — Wall Street is back to falling on Tuesday as its September swoon worsens.
The S&P 500 was 1.2% lower in morning trading, coming off a rare gain and on track for its fifth drop in six days. The Dow Jones Industrial Average was down 294 points, or 0.9%, at 33,712, as of 10:20 a.m. Eastern time, and the Nasdaq composite was 1.3% lower.
Stocks have tumbled this month, which is on track to be Wall Street's worst of the year, as the realization sets in that the Federal Reserve will indeed keep interest rates high for a long time. The growing understanding has sent yields in the bond market to their highest levels in more than a decade, which in turn has undercut prices for stocks and other investments.
Treasury yields were holding relatively steady Tuesday following a mixed batch of reports on the economy. The yield on the 10-year Treasury slipped to 4.51% from 4.54% late Monday, though it’s still near its highest level since 2007.
One report showed confidence among consumers was weaker than economists expected. That's concerning because strong spending by U.S. households has been a bulwark keeping the economy out of a long-predicted recession.
A separate report said sales of new homes across the country slowed by more last month than economists expected, while a third report suggested manufacturing in Maryland, the Virginias and the Carolinas may be steadying itself following a more than yearlong slump.
While housing and manufacturing have felt the sting of high interest rates, the economy overall has held up well enough to raise worries that upward pressure still exists on inflation. That pushed the Fed last week to say it will likely cut interest
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