Stocks closed lower on Wall Street Tuesday and bond yields jumped as remarks by a Federal Reserve governor fueled expectations on Wall Street that the central bank is prepared to more aggressively raise interest rates and take other steps in a bid to tame surging inflation. The S&P 500 fell 1.3%, its first loss in three days. Weakness in big technology stocks weighed down the market most. Twitter rose after disclosing an arrangement with Tesla chief Elon Musk that will give him a board seat but also limit how much of the company he can buy while he’s a director.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Stocks fell in afternoon trading Tuesday and bond yields jumped as remarks by a Federal Reserve governor fueled expectations on Wall Street that the central bank is prepared to more aggressively raise interest rates and take other steps in a bid to tame surging inflation.
The S&P 500 fell 1.2% as of 3:30 p.m. Eastern. The Dow Jones Industrial Average fell 250 points, or 0.7%, to 34,670 and the Nasdaq fell 2.3%.
The selling put the S&P 500 on pace for its first loss in three days. The benchmark index notched three straight weekly gains coming into this week. That recent market strength may be giving the Fed the leeway to raise interest rates more aggressively, said Zach Hill, head of portfolio management at Horizon Investments.
“Against that backdrop, things have obviously changed and the Fed is willing to ratchet up their hawkishness a bit,” Hill said.
Weakness from big technology stocks weighed down the broader market. Companies in the sector, with their pricey valuations, tend to push the market higher or lower more forcefully. Chipmaker Qualcomm fell 5.2%.
Twitter rose another 2.2% after disclosing an arrangement with Tesla chief Elon Musk that will give him a...
