The dropped 1.1%, the dropped 1.1% (or 329 points), and the dropped 0.60%.
Intraday gains in technology were erased by rising Treasury rates in response to Fed members’ comments that actions to halt growth, like as rate rises, increase the likelihood of a recession.
The president of the Atlanta Federal Reserve, Raphael Bostic, recently stated that the Fed “still has a ways to go” in its efforts to reduce inflation. Bostic’s comments come only hours after Susan Collins, president of the Boston Federal Reserve, argued that greater unemployment was required to help contain inflation.
U.S. yields approached 4%, while in the United Kingdom they reached a 15-year high of 4.3%.
The stock of Apple (NASDAQ:) was initially down after JPMorgan’s bullish remark on iPhone demand, but the company ultimately closed the day with no change.
JPMorgan highlighted a study conducted in August by Wave7 that predicts Apple’s next product line would do better than the iPhone 13.
NVIDIA Corporation (NASDAQ:), Advanced Micro Devices (NASDAQ:), and Micron Technology Inc (NASDAQ:) all dropped more than 2%, putting more stress on the technology sector.
Some of the selling pressure came from utilities, which are similar to bonds but less appealing in a rate-hike scenario.
Concerns that slowing global growth may reduce demand for energy led to a decline of more than 2 percent in the price of energy.
While the recent drop in oil “may see OPEC intervene again,” ANZ Research recently noted that “at present prices, it appears the market is now pricing-in the expected consequences of a protracted recession.”
Shares of Halliburton Company (NYSE:), ONEOK Inc (NYSE:), and Baker Hughes Co (NASDAQ:) all dropped significantly, with Baker Hughes falling by more than 5%.
However, consumer stocks were the day’s relative winners, boosted by a rise in casino stocks after Macau announced it will once again allow tourists from Mainland China to come via tours and electronic permits.
Companies like Wynn Resorts, Melco Resorts, and Las Vegas Sands all had gains in the double digits on the stock market.
PG&E Corp (NYSE:) rose by over 1% when it was announced that the business will replace Citrix Systems (NASDAQ:) in the S&P 500.