NEW YORK (AP) — Stocks fell in Wall Street morning trading on Monday as investors braced for a big rate hike by the Federal Reserve this week.
The S&P 500 is down 0.2% as of 10:18 am ET. The Dow Jones Industrial Average fell 27 points (0.1%) to 30,799 and the Nasdaq fell 0.3% of his.
Healthcare stocks held the largest weight in the market. Pfizer fell 2.1%. Energy stocks also fell as US oil prices fell his 1.5%.
Wall Street continues to focus on inflation and attempts by the Federal Reserve to bring down prices by aggressively raising interest rates. On Wednesday, the central bank will release its latest decision on interest rates and is expected to raise the benchmark interest rate, which influences rates across the economy, by another three-quarters of a percentage point.
Yields on two-year US Treasuries, which tend to follow expectations of action by the US Federal Reserve (Fed), climbed to 3.96% from 3.87% late Friday. The 10-year yield, which affects mortgage rates, rose from 3.45% to 3.49%.
The broader market is coming out of its worst week in three months after surprisingly hot reports on inflation and big companies including FedEx warning of a downturn in the economy.
Wall Street worries that the Fed’s plan to curb inflation, the highest in 40 years, is too aggressive and could put the brakes on growth too much, pushing the economy into recession. Rising interest rates also tend to weigh on stocks, especially the more expensive technology sector.
Investors will get another update on the housing sector on Wednesday, when the National Association of Realtors releases August figures on sales of previously occupied homes.
Average long-term mortgage rates in the United States topped 6% for the first time since the 2008 housing crash. Rising interest rates could make an already tight housing market even more expensive for US homebuyers.
Britain was observing a day of mourning for Queen Elizabeth II. Germany’s DAX rose 0.1% while her CAC 40 in Paris fell 0.6%. Hong Kong’s Hang Seng Index fell 1% and the Shanghai Composite Index fell 0.3%. Japanese markets are closed for public holidays.
AP Business Writer Elaine Kurtenbach contributed to this report from Bangkok.
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