Dow tumbles 600 points on Monday to wrap up worst day since June as summer rally fades

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The Dow Jones Industrial Average fell sharply on Monday, its worst day since June, as the summer rally died down and fears of aggressive interest rate hikes returned to Wall Street.

The Dow fell 643.13 points, or 1.91%, to 33,063.61. The S&P 500 fell 2.14% to 4,137.99, and the Nasdaq Composite fell 2.55% to 12,381.57, respectively. It was the worst day of trading since June 16 for the Dow Jones and the S&P 500.

The losses come on the heels of a losing week, which ended a four-week winning streak for the S&P 500. Still, the broader market index remains about 13% above its lows. June.

Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powell’s final comments on inflation at the central bank’s annual economic symposium in Jackson Hole.

“When you see the market falling like this right now, that’s the market saying the Fed needs to be more aggressive to slow the economy further” if it wants to bring inflation down, said Robert Cantwell, portfolio manager. portfolio at Upholdings.

Tech stocks fell on concerns over more aggressive rate hikes from the Fed. Amazon fell 3.6%. Semiconductor stocks fell with Nvidia down around 4.6%. Shares of Netflix fell about 6.1% following a downgrade to sell from CFRA.

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