US stocks fell on Tuesday, extending a rout spurred by fears of Federal Reserve-backed monetary tightening to fight inflation.
The S&P 500 fell 0.7% after surging in early trading, deepening its losses after the benchmark plunged about 4% on consecutive losing days. The Dow Jones Industrial Average lost 175 points, or about 0.6%, and the technology-heavy Nasdaq Composite fell 0.7%.
The moves came after a string of upbeat economic data in the labor market and U.S. consumers signaled the economy could withstand further rate hikes.
The Labor Department’s Job Openings and Turnover Survey, or JOLTS, showed job openings in the United States soared to 11.2 million last month, indicating continued strain on the labor market as employers struggle to fill vacancies. Economists polled by Bloomberg had expected 10.375 million in July.
The June data also reflected a sharp upward revision from 10.698 million opens to 11 million.
A Conference Board reading on Tuesday morning also showed that U.S. consumer confidence rose in August after three consecutive months of declines as Americans reduced their pessimism about the economy amid falling oil prices. ‘essence.
The index rose to 103.2 in August from a downwardly revised reading of 95.3 last month. Economists called for a print of 98, according to Bloomberg data.
On the housing front, Standard & Poor’s CoreLogic Case-Shiller home price index posted an 18.0% annual increase in June, up from 19.9% the previous month. The 20-City Composite posted an 18.6% year-over-year gain, compared to 20.5% the previous month.
Shares of Nikola (NKLA) fell around 8% on Tuesday after the electric vehicle maker said it could execute a stock sale to raise up to $400 million for production costs as ‘it’s grappling with higher prices on labor and raw materials.
Shares of Bed Bath & Beyond Inc. (BBBY) fell nearly 4% after a 10% jump early in trading, as investors await a strategic update from the company later this week. The meme stock has soared this month and is on course for a record monthly gain in August after surging more than 170%.
Shares of Chinese search engine Baidu (BIDU) fell more than 8% after reporting higher-than-expected quarterly revenue on Tuesday, buoyed by growth in its cloud business. The company, however, reported its first annual contraction in quarterly revenue in two years.
“Stocks had a reasonable chance for a second straight week last Thursday, but the bearish reaction to Powell’s Jackson Hole speech pushed the market decisively into the red,” said Chris Larkin, chief trading officer. at Morgan Stanley’s E*TRADE in a Note. “Although this is a busy week of economic data, Friday’s jobs report will be the most watched as investors and the Fed get another read on the labor market.”
In commodity markets, oil prices retreated amid renewed fears that a global recession could affect demand. West Texas Intermediate crude oil fell 2.7% to $94.39 a barrel, while Brent futures plunged 3.4% to $101.48 a barrel.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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