At the close of trade, the Dow Jones Industrial Average index dropped 280.44 points, or 0.88%, to 31,510.43. The S&P500 index was down 31.16 points, or 0.78%, to 3,955. The tech-heavy Nasdaq Composite Index decreased by 66.93 points, or 0.56%, to 11,816.20. For the month, the Dow fell 4.06%, the S&P 500 lost 4.24% and the Nasdaq declined 4.64%.
Stocks fell on the prospect about higher interest rates following some hawkish comments from Federal Reserve officials.
Cleveland Federal Reserve President Loretta Mester said on Wednesday that she expects the Fed to raise interest rates above 4% by early next year. Mester also said she does not anticipate the Fed cutting interest rates in 2023, with the central bank likely to keep rates at an elevated level in an effort to combat inflation.
New York Fed chief John Williams said rates will need to be held in restrictive territory for some time, adding that this meant through 2023, the latest official to push back on financial-market expectations of cuts later next year.
Shares of technology sector tumbled, after soft forecasts from Seagate and HP Inc. Seagate slashed its first-quarter earnings expectations, citing macroeconomic concerns that are forcing cloud companies and PC makers to cut inventory levels. In addition, HP Inc forecast downbeat quarterly and full-year profit on slowing PC sales.
Airline stocks moved sharply lower. Shares of gold metal sector declined as the price of the precious metal fell to its lowest levels in over a month, with gold for December delivery slipping $10.10 to $1,726.20 an ounce. Steel, computer hardware and chemical stocks also came under pressure, moving lower along with most of the other major sectors.
ECONOMIC NEWS: Payroll processor ADP released a report showing private sector employment in the U.S. increased by 132,000 jobs in August after jumping by nearly 270,000 jobs in July.
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