Third day of losses at Wall

Wall Street’s main indexes closed slightly lower on Tuesday, ending three consecutive negative sessions as investors worry that despite the slowing economy the Federal Reserve will continue its aggressive interest rate hikes until it finds that inflation has entered trajectory to return to the 2% target.

The three-day losing streak follows an impressive rally from the indexes’ lows since mid-June amid optimism for a more dovish stance by the Fed on policy tightening in the coming months. This optimism has receded in the last few days after the aggressive statements of high-ranking officials of the US central bank about the need to deal decisively with the inflation rally.

Analysts do not rule out the Fed raising interest rates by 75 basis points in September, the third such increase in a row, despite the risks to the economy.

The entire market is now awaiting the speeches of the central tables at the Fed’s annual conference in Jackson Hole, Wyoming. The conference starts on Thursday, but the big event will be Fed Chairman Jerome Powell’s speech on Friday. Analysts expect Powell to use his speech to emphasize that the central bank will drive inflation to its 2% target even if that means a recession for the economy.

Indicators – Statistics

On the board, the Dow Jones lost 154.02 points, or -0.47%, to close at 32,909.59, while the S&P 500 fell 9.26 points, or -0.22%, to 4,128.73. The tech Nasdaq closed essentially unchanged at 12,381.30 points.

Of the 30 stocks that make up the Dow Jones industrial index, nine closed with a positive sign and 21 with a negative. Chevron was the biggest gainer with gains of $5.04 or 3.21% to close at $161.94, followed by Caterpillar at $197.21 with a gain of 2.84% and the Dow with gains of 2, 22% to $55.62.

Biggest losers were Procter & Gamble (-1.94%), Home Depot (-1.70%) and UnitedHealth Group (-1.61%).

Later in the day, data from S&P Global today showed that US business activity slowed further in August, with the index sliding to its lowest level since May 2020.

In particular, the composite PMI, which combines manufacturing and services, fell to 45.0 in August from 47.7 in July, according to preliminary data from S&P Global. Readings below 50 indicate a contraction in business activity.

Meanwhile, data from S&P Global showed that the index for business activity in services fell to a 27-month low of 44.1 points from 47.3 points in July, while the manufacturing index fell to a 25-month low of 51.3 points from 52.2 points in the previous month.

Sales of newly built single-family homes also plunged in July as high mortgage rates and increased home prices continue to weigh on consumer purchasing power.

In particular, new sales fell 12.6% to a seasonally adjusted 511,000 units last month, as announced by the US Commerce Department. The average estimate of analysts in a Reuters poll had put new sales at 575,000 units.