Wall Street slips on rate-hike jitters
Wall Street’s main indexes slipped in choppy trading on Monday, extending declines for a third straight session, on worries that the Federal Reserve’s aggressive interest rate hikes could tip the U.S. economy into recession.
Five of the 11 S&P 500 sectors were lower. Healthcare stocks fell 1.6%, weighed down by a 9.5% fall in shares of Moderna Inc and similar declines in those of other vaccine makers a day after President Joe Biden said in a CBS interview that “the pandemic is over”.
The S&P 500 and the Nasdaq logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75-basis-point rise in rates at the end of Fed’s Sept. 20-21 policy meeting, with Fed funds futures showing a 15% chance of a whopping 100 bps increase.
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