2023-10-03 23:12:10
By Caroline Valetkevitch
NEW YORK (Reuters) – The S&P 500 index closed at its lowest level since June 1 on Tuesday, as economic data reinforced the reading that the Federal Reserve may need to keep interest rates high.
The Dow Jones index turned negative for the year for the first time since June and closed at its lowest level since May 31. The Nasdaq technology index also closed at its lowest level since May 31.
Data showed that U.S. job openings rose unexpectedly in August, fueling concerns about a tight labor market ahead of the country’s monthly jobs report.
Investors continue to closely watch 10-year Treasury yields, which hit 16-year highs on Tuesday.
All but one sector of the S&P 500 — utilities — fell on the day, led by declines in the consumer discretionary and technology sectors. Growing companies tend to be among those most affected by rising earnings.
The Dow Jones fell 1.29% to 33,002.38 points. The S&P 500 lost 1.37%, to 4,229.45 points. The Nasdaq technology index fell 1.87% to 13,059.47 points.
Atlanta Fed President Raphael Bostic said there is no urgency for the central bank to raise its interest rate again, but it will likely be “a long time” before cuts in borrowing costs are appropriate. Cleveland Fed President Loretta Mester said she is open to raising the benchmark rate again, possibly at the central bank’s next meeting.
While the Dow is down 0.4% for the year, the Nasdaq remains up about 25% since Dec. 31 after a rally fueled by enthusiasm for artificial intelligence.
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