© Archyde.com. Traders work during trading on Wall Street in New York on Monday. Photo: Brendan McDermid/Archyde.com.
NEW YORK (Archyde.com) – U.S. stocks closed lower on Monday, adding to last week’s sharp losses, as concerns persisted about the Federal Reserve’s determination to raise interest rates to fight inflation even as the economy slows.
Federal Reserve Chairman Jerome Powell said last Friday that the US economy will need tight monetary policy “for some time” before inflation can be brought under control, dashing hopes that the central bank in the world’s largest economy may turn to quieter rate hikes after Recent data indicated that price pressures have reached a peak.
The Standard & Poor’s 500 recovered from session lows that put it at its lowest level in a month, but the benchmark index recorded its biggest two-day drop in percentage terms in two and a half months.
The stock volatility index, a measure of fear on Wall Street, hit a seven-week high of 27.67.
According to preliminary data, the Standard & Poor’s 500 ended the trading session down 28.04 points, or 0.69 percent, to 4029.62 points, while the Nasdaq Composite Index fell 129.90 points, or 1.07 percent, to close at 12011.81 points.
The industrial index fell 183.01 points, or 0.57 percent, to 32,100.24 points.
Major interest rate-sensitive technology stocks, such as Apple (NASDAQ:) and Microsoft, were among the biggest losers as bond yields soared.
(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)