Written by Yassin Ibrahim
Investing.com – The S&P 500 index pared some gains on Monday as technology retreated from session highs amid concerns about an increasingly tough Federal Reserve at a time when the slowdown in the economy is expected to intensify.
It fell 1%, 1.2%, or 365 points, and fell 0.42%.
Technology has given up its daily gains, under pressure from the continued rise in Treasury yields as Fed members suggest that slowing growth measures including raising interest rates increase the chance of the economy entering recession.
Atlanta Federal Reserve Chairman Rafael Bostic said the Fed “still has a ways to go” to bring down inflation. Bostick’s comments come hours after Susan Collins, president of the Federal Reserve Bank of Boston, said higher unemployment was needed to help rein in inflation.
The US jumped nearly 4%, while the US jumped about 4.3% to its highest level in 15 years.
However, Apple (NASDAQ:) weathered the storm after the positive comment on iPhone order from JPMorgan.
JPMorgan cited a Wave7 August survey showing that Apple’s new line of products is expected to be better than the iPhone 13.
Chip stocks also added pressure to the technology sector, led by NVIDIA Corporation (NASDAQ :), Advanced Micro Devices Inc (NASDAQ :), and Micron Technology Inc (NASDAQ :), down more than 1%.
Utilities, a less attractive bond agent in a price environment, also played a role in the market sell-off.
Energy fell more than 2% as it continued to falter amid concerns that worsening global growth will further affect energy demand.
“At current levels, the market appears to be pricing now – in the usual effect of a deep recession,” ANZ Research said in a recent note, though it added that the oil sell-off “could see OPEC intervene again.”
Halliburton Corporation (NYSE:), ONEOK Inc (NYSE :), and Baker Hughes Nasdaq shares fell sharply, with the latter dropping about 5%.
However, consumer stocks were the relatively better performing sector today, buoyed by a rally in casino shares after Macau said it would resume access to visits from mainland China through tours and e-visas.
Las Vegas Sands (NYSE: :), Wynn Resorts (NASDAQ:) and Melco Resorts & Entertainment Ltd (NASDAQ :), was a doubling.
In other news, PG&E (NYSE:) stock rose more than 1% as the company prepares to replace Citrix Systems (NASDAQ 🙂 in the S&P 500.