Stock Market Today: Dow tumbles as rate scare extends October selloff By Investing.com

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Stock Market Today: Dow tumbles as rate scare extends October selloff

Signs of cracks in the U.S. consumer?dropped by more than expected to a reading of 103.0, a four-month low, stoking concern the consumer is beginning to feel pressure from the double whammy of higher inflation and interest rates.

Consumers -- whose spending has surprised to upside for months and makes up the two-thirds of the economic growth – have been shaken by ongoing rises in prices and the potential of government shutdown. "Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for groceries and gasoline in particular," said Dana Peterson, chief economist at The Conference Board in Washington.Treasury yields remained at their highest level in more than decade, with theat close to 4.55%, after JPMorgan’s Jamie Dimon warned that the Federal Reserve could lift rates to 7%.

“I am not sure if the world is prepared for 7%,” Dimon told The Times of India in an interview. “I ask people in business, ‘Are you prepared for something like 7%?’ The worst case is 7% with stagflation. With the Fed funds rate at 5.4%, the extra 200 basis points to push rates to 7% would “be more painful than the 3% to 5%” move,” Dimon added.Big tech resumed its slide after brief respite on Monday as investors continue to price in the pain for growth stocks amid the prospect of higher for longer interest rate regime.

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