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Dow slumps 600 points Monday to wrap worst day since June as summer rally fades

The Dow Jones Industrial Average fell sharply Monday, in its worst day since June, because the summer rally fizzled out and fears of aggressive interest hikes returned to Wall Street.

The Dow fell 642.6 points, or 1.91%. The S&P 500 and Nasdaq Composite dropped 2.13% and 2.55%, respectively. It had been the worst day of trading since June 16 for the Dow and the S&P 500.

Those losses seriously the trunk of a losing week, thatsnapped a four-week winning streakfor the S&P 500. Still, the broader market index remains 13% above its June lows.

Investors are anticipating what is actually a volatile week of trading before Federal Reserve Chairman Jerome Powells latest comments on inflation at the central banks annual Jackson Hole economic symposium.

Once you start to see the market at this time dropping down such as this, this is actually the market saying the Fed needs to be more aggressive to slow the economy down further should they desire to bring inflation back off, said Robert Cantwell, portfolio manager at Upholdings.

Tech stocks declined on concerns over more aggressive rate hikes from the Fed. Amazon fell 3.6%. Semiconductor stocks dropped with Nvidia down 4.6%. Shares of Netflix were 6.1% lower carrying out adowngrade to market from CFRA.

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