In the U.S., the economy has remained more resilient than expected despite higher interest rates. A report on Tuesday showed growth for sales at U.S. retailers accelerated by more in July than economists expected.
The Fed has already hiked its key interest rate to the highest level in more than two decades. High rates work by bluntly dragging on the entire economy and hurting prices for investments. The declines meant stocks of energy producers were among the biggest losers in the S&P 500. Exxon Mobil’s 2.6% drop was one of the heavier weights on the index.
The largest loss came from Discover Financial Services. It dropped 9.4% after it said its CEO is stepping down, effective immediately. All told, the S&P 500 fell 51.86 points to 4,437.86. The Dow dropped 361.24 to 34,946.39, and the Nasdaq sank 157.28 to 13,631.05.