Wall Street ends a busy post-summer session in the red

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  • ISM services sector data exceed estimates
  • Bed Bath & Beyond shares sink after CFO death
  • Wall St. has fallen for three weeks in a row
  • The Dow was down 0.55%, the S&P 500 was down 0.41% and the Nasdaq was down 0.74%.

NEW YORK, Sept 6 (Reuters) – Wall Street’s major indexes edged lower on Tuesday, the first session since the U.S. Labor Day holiday and summer break, as traders weighed fresh economic data in choppy trading.

A survey by the Institute for Supply Management (ISM) showed the U.S. services sector eased supply constraints and price pressures amid strong order growth and employment for the second consecutive month. read more

However, numbers from S&P Global showed that the services sector purchasing managers’ index declined from flash estimates for August.

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A stronger-than-expected reading in the U.S. services sector fueled expectations that the Federal Reserve will raise interest rates to curb inflation.

“The Fed has made us very data-driven, so investors are looking at every piece of information that comes out, not just at the absolute level, but trying to guess what it means when the Fed meets,” said Carol Schlief. Deputy Chief Investment Officer in the BMO Family Office.

“One of the things that frustrates investors is that there is very little going up in the markets either solidly or solidly,” he added.

Concerns about energy supplies to Europe and how COVID-19 lockdowns will affect China’s economy pushed markets lower on Tuesday, said Shawn Cruz, chief trade strategist at TD Ameritrade. “Uncertainty and instability don’t come from America; they actually come from abroad.”

Tech-heavy Nasdaq (.IXIC) It was the seventh straight day of losses since November 2016.

Rate-Sensitive Shares of Amazon.com (AMZN.O) and Microsoft Corp (MSFT.O) U.S. Treasury yields fell about 1% as they rose to their highest level since June. Apple Inc (AAPL.O)It lost 0.8, releasing new iPhones next Wednesday.

According to CME, traders see a 74% chance of a third consecutive 75-basis-point rate hike at the Fed’s policy meeting later this month. FedWatch tool.

Focus will be on Fed Chairman Jerome Powell’s speech on Thursday and US consumer price data next week.

Markets started September on a weak note, extending a slide that began in late August as dovish comments from central bank policymakers and data signaling US economic momentum raised fears of aggressive interest rate hikes.

The S&P is down nearly 18% so far this year, while the Nasdaq is down more than 26% as rising interest rates weigh on megacap tech and growth stocks.

Among the key S&P sectors, energy (.SPNY) and communication services (.SPLRCL) During defensive applications, poor performance (.SPLRCU) and real estate (.SPLRCR) is high

Dow Jones Industrial Average (.DJI) 173.14 points or 0.55% down to 31,145.3; S&P 500 (.SPX) lost 16.07 points or 0.41% to 3,908.19; and the Nasdaq Composite (.IXIC) It was down 85.96 points or 0.74% at 11,544.91.

CBOE Volatility Index (.VIX)Wall Street’s so-called fear gauge touched a two-month high of 27.80 before ending at 26.91.

Bed Bath & Beyond Inc (BBBY.O) It plunged 18.4% after Chief Financial Officer Gustavo Arnol fell to his death from New York’s Tribeca skyscraper. read more

Digital World Acquisition Corporation (DWAC.O) Reuters slumped 11.4% after the blank check acquisition firm that agreed to merge with former US President Donald Trump’s social media company failed to get enough shareholder support for an extension to complete the deal.

Volume in US equities was 10.71 billion shares compared to the full session’s average of 10.46 billion over the last 20 trading days.

Declining issues outnumbered advancers by a 2.46-to-1 ratio on the NYSE; On the Nasdaq, a 2.12-to-1 ratio favored decliners.

The S&P 500 posted no new 52-week highs and 29 new lows; The Nasdaq Composite posted 19 new highs and 317 new lows.

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Reporting by Carolina Mandel in New York and additional reporting by Shruti Shankar and Angika Biswas in Bangalore; Editing by Soumiyadeb Chakraborty, Maju Samuel and Richard Chang

Our Standards: Thomson Reuters Trust Principles.

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