Dow Falls 200 Points—Market Selloff Continues As Investors Worry About Higher Interest Rates

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MARKET ALERT: The market moves lower once again this morning—following a sharp selloff Friday—as investors continue to worry about ongoing interest rate hikes and tighter monetary policy from the Fed potentially throwing the economy into a recession

The stock market moved lower once again on Monday—following a sharp selloff on Friday—as investors continue to worry about ongoing interest rate hikes and tighter monetary policy from the Federal Reserve potentially throwing the economy into a recession.... [+]The Dow Jones Industrial Average was down 0.8%, over 200 points, while the S&P 500 lost 0.6% and the tech-heavy Nasdaq Composite 0.3%.

Powell’s speech also further squashed investor hopes about a potential Fed pivot, with the central bank unlikely to scale back its aggressive rate hike campaign anytime soon despiteTraders are now pricing in a third consecutive increase of 75 basis points at the Fed’s upcoming policy meeting in September, rather than a smaller 50 basis point rate hike, according to CME Group data.

Tech stocks led the market declines as treasury yields rose again on Monday, with the likes of Facebook-parent Meta Platforms, Apple and Amazon all falling by more than 1%. Following Powell’s speech on Friday, there is a rising risk the Fed could “overtighten” by hiking rates too much and throwing the economy into a recession, several experts including Wharton professor Jeremy Siegel“Market sentiment is about as negative as it was in June and early July following an avalanche of hawkish articles and headlines exiting the Jackson Hole conference,” says Vital Knowledge founder Adam Crisafulli.

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