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Major indexes fall on Wall Street, increasing recent losses

NY — Stocks fell in afternoon trading on Wall Street Monday, as investors remain unnerved by the Federal Reserves pledge to keep interest levels high so long as it requires to tame inflation.

The S&P 500 fell 0.2% by 1: 20 p.m. Eastern. The index fell 3.4% Friday, its biggest single-day drop since mid-June.

The Dow Jones Industrial Average fell 81 points, or 0.3% to 32,204, following Fridays 1,008 point decline. The Nasdaq fell 0.6%.

Technology stocks were on the list of biggest weights available. Apple slipped 1.1%.

Healthcare stocks also fell sharply. Drug delivery technology company Catalent slumped 6.2% after giving investors a disappointing revenue forecast.

Inflation, its effect on the economy and the Feds battle plan remain Wall Streets main focus. The other day, Fed chief Jerome Powell indicated the central bank will raise rates into next year and keep them elevated since it tries to quell demand and lower charges for goods and services.

The Feds last two hikes have already been by 0.75 points, and Wall Street is expecting a third such upsurge in September, in accordance with CME Group. Some investors had hoped that the Fed would ease through to rate hikes into next year if inflation subsides. That sentiment resulted in a rally for stocks in July and early August. All three major indexes are actually lower this month.

Energy stocks made gains as U.S. crude oil prices rose 3.5%. Exxon Mobil rose 3.3%.

The yield on the 10-year Treasury, which follows expectations for longer-term economic growth and inflation, rose to 3.11% from 3.03% late Friday. The yield on the two-year Treasury, which will track expectations for Fed action, rose to 3.42% from 3.38%.

Investors have already been closely watching economic reports to obtain a better sense of just how much the economy is slowing and whether inflation is beginning to cool from the latest levels in four decades.

The Feds preferred gauge of inflation decelerated last month, while other data shows consumer spending slowed. Wall Street are certain to get several more updates on the economy this week.

The Conference Board will release its latest reading on consumer confidence on Tuesday.

The federal government will release its closely watched monthly jobs report on Friday. The employment market has remained resilient amid a broader slowdown for the economy. Which has helped temper worries that the U.S. is facing a potential recession.

European markets were also lower and Asian markets closed lower overnight. Chinese economic data showing a drop in industrial profits indicated a strong recovery there will need time, amid fresh COVID-19 restrictions.

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