Stocks fall after three weeks of selling
US stocks fell on Tuesday as traders returned to Wall Street for a short week after the Labor Day holiday.
The S&P 500 was down 0.3%, while the Dow Jones Industrial Average fell by the same margin, or about 100 points. The heavy Nasdaq Composite Index is down 0.5%. The moves come after three consecutive weeks of losses for the major averages.
Chris Larkin, managing director of trading at Morgan Stanley’s E*TRADE said in a note on Tuesday.
“Bulls hoping for a bounce will do so during the abbreviated Labor Day week that has historically paralleled September and its track record of underperforming: Losses have been slightly less frequent over the past three decades, but volatility has been higher.”
Treasuries rose as investors await the next move in federal policy later this month. The benchmark 10-year note rose to 3.269%, while the two-year Treasury note rose to 3.449%.
Oil prices fell after a temporary rally in the wake of the first supply cut by OPEC+ in more than a year as the group works to manage global crude markets. West Texas Intermediate crude fell 0.5% to $86.44 a barrel, while Brent crude futures fell 0.2% to $92.81.
In the cryptocurrency markets, Bitcoin (BTC-USD) has slipped back below the $20,000 level.
Bed Bath & Beyond (BBBY) shares were down nearly 13% at the start of the session Tuesday morning. Last week, the home goods retailer announced in a strategic update that it was laying off employees and closing nearly 150 stores as part of a turnaround effort for its struggling business.
Reports emerged this weekend that the company’s chief financial officer, Gustavo Arnal, died by suicide on Friday afternoon after falling from a skyscraper in New York’s Tribeca area known as the Jenga Tower. Before his death, Arnal was named in a $1.2 billion shareholder lawsuit alleging her involvement in a “pump and dump” scheme.
“The company is in the early stages of evaluating the complaint, but based on current knowledge, the company believes the allegations are unfounded,” a Bed Bath & Beyond spokesperson told Yahoo Finance.
Shares of Digital World Acquisition (DWAC) tumbled more than 17% after the special purpose acquisition firm that was due to merge with former President Donald Trump’s social media platform failed to gain enough shareholder support to extend the deadline to complete the deal.
Tuesday’s moves come after the Labor Department released its latest monthly jobs report for August on Friday. The US economy added 315,000 jobs in the past as the unemployment rate rose to 3.7%, according to government data.
“The modest slowdown in August employment growth may be welcome by the Fed, but it will not prevent further significant rate hikes in the coming months,” Oxford Economics’s Nancy Vanden Houten and Kathy Bostancik said in a note on Friday. “Fed Chairman Powell clarified last week that the FOMC plans to push interest rates into a well-restricted area to reduce inflation and prevent unconstrained inflation expectations.”
Bank of America strategists led by Michael Hartnett warned Friday of a “rapid inflation shock” and a “slow recession shock,” as investors anticipate continued monetary policy tightening by the Federal Reserve.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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