US stock market: Dow, S&P 500 ease as rate worries mount, banks shares dip
stocks mostly edged lower on Tuesday as worries lingered that the Federal Reserve will need to keep interest rates higher for longer and as banks shares eased.
Financials, down 0.8%, were the biggest drag on the S&P 500. An S&P downgrade of multiple regional U.S.
lenders weighed on bank shares, with the KBW regional banking index down 2.4% and the S&P 500 banks index down 2.1%.
Investors will seek some clarity on the rate outlook when Fed Chair Jerome Powell speaks at a meeting in Jackson Hole on Friday,
«Rates have backed up pretty good again, so that's kind of putting somewhat of a damper on stocks,» said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
The benchmark 10-year Treasury yield hit almost 16-year peaks on the view the Fed could keep interest rates higher for longer.
The Dow Jones Industrial Average fell 170.34 points, or 0.49%, to 34,293.35, the S&P 500 lost 11.06 points, or 0.25%, to 4,388.71 and the Nasdaq Composite added 13.79 points, or 0.1%, to 13,511.38.
Investors also eagerly awaited results and a forecast from chip company Nvidia due late on Wednesday. Its blockbuster report last quarter fueled a rally in tech stocks and artificial intelligence hopes.
Shares of Nvidia hit an all-time high of $481.87 early but were last down 2.8%.
Among decliners, Macy's fell 14% after the department store chain warned of weak consumer spending through the crucial holiday shopping season.
Declining issues outnumbered advancing ones on the NYSE by a 1.34-to-1 ratio; on Nasdaq, a 1.38-to-1 ratio favored decliners.
The S&P 500 posted 4 new 52-week highs and 12 new lows; the Nasdaq Composite recorded 37 new highs and 196 new lows.
