2023-09-06 23:30:34
© Reuters. Wall Street sign outside the New York Stock Exchange 10/26/2020 REUTERS/Mike Segar
By Sinéad Carew and Shristi Achar A
(Reuters) – Wall Street’s three main indexes closed lower on Wednesday, with the technology index leading the declines, after stronger-than-expected data from the U.S. services sector fueled concerns that inflation remains persistent. it will mean that interest rates will stay higher for longer.
The Institute for Supply Management said on Wednesday that its non-manufacturing PMI rose to 54.5 last month, against expectations of 52.5, while an indicator of prices paid by service sector companies for inputs rose.
Traders were betting on a 93% probability that the Federal Reserve will leave interest rates unchanged after its Sept. 20 meeting, CME Group’s FedWatch tool showed.
Earlier, Boston Fed President Susan Collins emphasized the need for the US central bank to “proceed carefully” with its next monetary policy steps.
The fell 0.57%, to 34,443.19 points. The lost 0.70%, to 4,465.48 points. The Nasdaq technology index fell 1.06% to 13,872.47 points.
Of the 11 main industrial sectors in the S&P 500, technology, with strong growth, was the one that declined the most, with losses of 1.4%.
The defensive public services sector led the gains, up 0.2%. The energy sector was the only other sector that also advanced, with an increase of 0.1% supported by higher prices.
The S&P 500 showed little reaction to the Fed’s “Beige Book” report on the U.S. economy, a week ahead of the much-anticipated August inflation data and the Fed’s interest rate decision on September 20.
The report showed “modest” economic growth in the US in recent weeks, while job growth was “moderate” and inflation eased in most of the country.
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