In a gloomy start to the week, Wall Street’s major indexes lost more than 1% on Monday as investors fretted about aggressive signals from Federal Reserve policymakers amid sluggish economic growth.
Early trading saw declines across all 11 major S&P 500 sectors, with rate-sensitive equities in the consumer discretionary, communication services, and information technology industries among the worst losers.
The Nasdaq and S&P 500’s four-week summer run came to an end last week when growth stocks fell, and the benchmark 10-year Treasury yield rose to about 3% amid concerns about inflation.
Banking behemoths will together pay more than $1 billion in regulatory penalties because their staff members use email and other unauthorized communications services like WhatsApp.
High-growth firms like Apple Inc. and Tesla Inc. saw 1.4% and 2.4% declines, respectively.
Wall Street’s fear barometer, the CBOE Volatility index, increased to 23.26, its highest level in more than two weeks.
After a difficult start to the year, the benchmark S&P 500 recovered about 14.5% from its mid-June lows thanks to expectations of a dovish Fed shift and good quarterly results.
On Monday, banks declined 2.1%, with JPMorgan Chase & Co. and Bank of America down by almost 2%.
This week’s attention is on Fed Chair Jerome Powell’s address at a symposium on central banking at Jackson Hole on Friday for additional indications of the direction of the tightening of monetary policy.
Several authorities have stressed the fight against inflation in response to predictions of a dovish tilt.