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Stocks fall after three-week sell-off

Stocks fall after three-week sell-off
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U.S. stocks fell on Tuesday as traders returned to Wall Street after Labor Day for a shortened holiday week.

The benchmark S&P 500 fell 0.7%, while the Dow Jones Industrial Average fell by the same range, or about 230 points. The tech-heavy Nasdaq Composite led losses, falling more than 1%. The moves come after three consecutive weeks of losses for the major averages.

“The market will enter the first full week of September for a three-week losing streak as investors continue to digest the Fed’s anti-inflation message ‘let’s not get distracted,'” said Chris Larkin, managing director of trading at Morgan Stanley E*TRADE said in a note on Tuesday.

“Bulls hoping for a rebound will do so during a shortened Labor Day week historically comparable to September and its track record of underperforming: losses have been a little less frequent over the past three decades, but volatility has been higher. “

Treasury bonds ticked higher as investors anticipate the Federal Reserve’s next monetary policy move later this month. The benchmark 10-year bond rose to 3.269%, while the 2-year government bond rose to 3.449%.

Oil prices fell after a temporary rally following OPEC+’s first supply cut in more than a year as the group works to manage global crude markets. West Texas Intermediate crude fell 0.5% to $86.44 a barrel, while Brent futures fell 0.2% to $92.81.

In the cryptocurrency markets, Bitcoin (BTC USD) slipped below $20,000 again.

Bed Bath & Beyond (BBBY) fell 18% at the start of Tuesday morning’s session. Last week, in a strategic update, the housewares retailer announced that it would lay off employees and close about 150 stores as part of a turnaround at its ailing business.

Reports surfaced this weekend that the company’s chief financial officer, Gustavo Arnal died by suicide on Friday afternoon after falling from a skyscraper in New York’s Tribeca neighborhood, known as the “Jenga” tower. Before his death, Arnal was named in a $1.2 billion shareholder lawsuit for alleged involvement in a “pump and dump” scheme.

A shopping cart is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly

A shopping cart is seen at a Bed Bath & Beyond store in Manhattan, New York City, the United States, 29 June 2022. REUTERS/Andrew Kelly

“The company is in the early stages of evaluating the complaint but, based on its current knowledge, believes the allegations are unfounded,” said a spokesman for Bed Bath & Beyond to Yahoo Finance.

Capturing the digital world (DWAC) shares plunged more than 17% after the special-purpose vehicle, which was set to merge with former President Donald Trump’s social media platform, failed to garner enough support from shareholders to extend the deadline for the deal to close .

Tuesday’s changes come after the Labor Department released its latest monthly jobs report for August on Friday. According to government data, the US economy added 315,000 jobs as the unemployment rate rose to 3.7%.

“The slight slowdown in job growth in August may be welcomed by the Fed, but it will not prevent further significant rate hikes in the coming months,” Oxford Economics’ Nancy Vanden Houten and Kathy Bostjancic said in a statement on Friday. “Fed Chair Powell made it clear last week that the FOMC plans to push rates well into hawkish territory to lower inflation and prevent inflation expectations from decoupling.”

Bank of America strategists led by Michael Hartnett warned of a “rapid inflation shock” and a “slow recession shock” on Friday, with investors anticipating continued monetary tightening by the Federal Reserve.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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