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The
Nasdaq finished barely in the green.
The financial sector <.SPBK> fell 0.9% and was the biggest drag
on the S&P 500. An S&P downgrade of credit ratings of multiple
regional U.S. lenders weighed on banks shares, with the KBW
regional banking index sliding 2.7% and the S&P 500 banks index
falling 2.4%.
Investors hope for clarity on the rate outlook when Fed Chair
Jerome Powell speaks at a meeting of central bankers on Friday
in Jackson Hole, Wyoming.
"Rates have backed up pretty good again, so that's kind of
putting somewhat of a damper on stocks," said Peter Tuz,
president of Chase Investment Counsel in Charlottesville,
Virginia.
The benchmark 10-year Treasury yield hit almost 16-year highs
overnight on the view the Fed could keep rates higher for
longer. Higher borrowing costs can slow spending by businesses
and consumers.
The Dow Jones Industrial Average fell 174.86 points, or 0.51%,
to 34,288.83, the S&P 500 lost 12.22 points, or 0.28%, to
4,387.55 and the Nasdaq Composite added 8.28 points, or 0.06%,
to 13,505.87.
Investors also eagerly awaited results and a forecast from chip
heavyweight Nvidia due after the bell on Wednesday. Nvidia
surprised investors with its strong forecast in May, fueling a
rally in its own and other tech stocks amid artificial
intelligence hopes.
Shares of Nvidia hit an all-time high of $481.87 early but were
down 2.8% on the day.
Department stores were among the day's biggest decliners. Macy's
sank 14.1% after the chain warned of weak consumer spending
through the crucial holiday shopping season. Shares of Kohl's
Corp. were down 10.3% while Nordstrom Inc was down 9.8%.
Volume on U.S. exchanges was 9.38 billion shares, compared with
the 10.97 billion average for the full session over the last 20
trading days.
Declining issues outnumbered advancing ones on the NYSE by a
1.43-to-1 ratio; on Nasdaq, a 1.43-to-1 ratio favored decliners.
The S&P 500 posted 4 new 52-week highs and 13 new lows; the
Nasdaq Composite recorded 39 new highs and 221 new lows.
(Reporting by Caroline Valetkevitch; additional reporting by
Amruta Khandekar and Shristi Achar A; Editing by Shinjini
Ganguli, Maju Samuel and David Gregorio)
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