US stocks extended losses on Tuesday, after a sharp sell-off a day earlier pushed the S&P 500 to confirm a bear market, as investors braced for aggressive interest rate hikes from the Federal Reserve this week.
The US central bank is expected to raise interest rates by 75 basis points on Wednesday after last week’s consumer price inflation data turned warmer than expected.
Wall Street’s main indices have fallen between 16% and 30% this year amid economic uncertainty created by the effects of supply chain and labor shortages, rising inflation, the Ukraine war and aggressive tightening by central banks.
Eight of the 11 major S&P sectors fell, led by sell-offs in defensive sectors such as utilities, real estate and healthcare. The energy sector tops the list of gains with a growth of 2.1%.
Among megacap growth stocks, Amazon fell 0.3%, while Tesla rose 0.4%.
The first jump in futures came in May after core producer prices cooled slightly on a year-on-year basis.
“Take a look at what the market looks like – interest rates are still a little high, the yield curve is extremely flat, the producer price index has come out a little better than expected, but really not much to be happy about,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
At 10:36 a.m. ET (1436 GMT), the Dow Jones Industrial Average was down 77.47 points, or 0.25%, at 30,439.27, and the Nasdaq Composite was down 9.69 points, or 0.09%, at 10,799.54.
The benchmark S&P 500 was down 4.81 points, or 0.13%, at 3,744.82 on Monday after closing down 20% from its all-time high hit on January 3.
FedEx Corp jumped 12.4% after increasing its quarterly dividend by more than 50%, while Oracle shares gained 9.2% as the firm reported upbeat quarterly results on demand for its cloud products.
As part of its efforts to cut costs amid volatile market conditions, Coinbase Global Inc fell 4% after announcing it would cut 18% of its workforce, or about 1,100 jobs.
Continental Resources Inc jumped 13.9% after the shale maker received an all-cash buyout offer from its founder Harold Haim, valuing the company at $25.41 billion.
The decline issues outweighed the advances for a 1.15-to-1 ratio on the NYSE and a 1.25-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 59 new lows, while the Nasdaq recorded seven new highs and 428 new lows.
This story has been published without modification in text from a wire agency feed.