NEW YORK (AP) — Stocks fell sharply in morning trade on Wall Street Monday, adding to their recent losses as the Federal Reserve remains focused on raising interest rates to combat historically high inflation.
The S&P 500 fell 0.3% at 10:23 a.m. Eastern. About 70% of stocks in the benchmark lost ground. It has just experienced its biggest daily and weekly decline since mid-June.
The Dow Jones Industrial Average fell 141 points, or 0.4% to 32,134 and the Nasdaq fell 0.2%.
Technology stocks were among the largest weightings in the market. Apple fell 0.7%.
Health care stocks also fell sharply. Drug delivery technology company Catalent fell 8.8% after giving investors a disappointing earnings forecast.
Energy stocks made gains as US crude oil prices rose 2.6%. Exxon Mobil rose 3.4%.
The 10-year Treasury yield rose to 3.10% from 3.03% Friday night.
Inflation, its impact on the economy and the Fed’s battle plan remain Wall Street’s main concern. Last week, the central bank signaled that it will raise rates next year as it tries to suppress demand and lower prices for goods and services.
The last two Fed hikes have been 0.75 points, and Wall Street expects a third such hike in September, according to CME Group.
Some investors had hoped the Fed would ease its rate hikes next year if inflation eased. This sentiment led to a rally in equities in July and early August.
Investors have been watching economic reports closely to get a better idea of the extent of the economy’s slowdown and whether inflation is starting to ease from the highest levels in four decades.
The Fed’s favorite inflation gauge slowed last month, while other data showed consumer spending slowed. Wall Street will receive several more economic updates this week.
The Conference Board will release its latest reading on consumer confidence on Tuesday.
The government will release its closely watched monthly jobs report on Friday. The job market remained resilient in the context of a general slowdown in the economy. This helped temper fears that the United States was facing a potential recession.
European markets were also down and Asian markets closed lower overnight. Chinese economic data showing a drop in industrial profits indicated that a strong recovery there will take time, amid new COVID-19 restrictions.
Damian J. Troise, The Associated Press
