Traders on the floor of the NYSE, July 6, 2022.
Source: NYSE
Stocks fell Tuesday after the latest home sales and consumer confidence reports disappointed expectations.
The Dow Jones Industrial Average lost 301 points, or 0.89%. The S&P 500 fell 1.2%, and the Nasdaq Composite pulled back 1.3%.
JPMorgan Chase CEO Jamie Dimon warned interest rates may need to rise further to tamp down inflation, comments that added to bearish sentiment Tuesday. Bank stocks declined, with the SPDR S&P Regional Banking ETF falling 0.7%. Wells Fargo shares dropped more than 1%, while Morgan Stanley fell nearly 1%.
Those moves would add to the market’s losses for the month. The Nasdaq Composite is down more than 6% in September, while the S&P 500 and Dow lost more than 4% and 2%, respectively. Among the catalysts pushing stocks lower this month is the Federal Reserve warning that it sees fewer rate cuts next year. The news pushed the benchmark 10-year Treasury yield to levels not seen since 2007.
“Investors are still on edge, nervous, about what the rise in bond yields have to say about the economy, about the stock market, about the Fed, as well as the value of the dollar,” said Sam Stovall, chief investment strategist at CFRA Research. “I think investors lack clarity and therefore are deciding to lighten up.”
Investors this week are also grappling with negotiations in Washington, as lawmakers hope to avert a government shutdown that could take place as early as Oct. 1 if Congress doesn’t agree on a spending bill.
Still, upcoming seasonal market tumult could present a window for investors. Though October is known as the “jinx month” because of the 1929 and 1987 crashes, it also has a reputation as a “bear killer,” according to the “Stock Trader’s Almanac.”
— CNBC’s Jeff Cox contributed to this report.