STORY: U.S. stocks closed lower for a third straight session on Tuesday as a rise in job openings fueled fears the U.S. Federal Reserve has another reason to maintain its aggressive path of interest rate hikes to combat inflation.
The Dow fell about a percent. The S&P 500 and Nasdaq each dropped more than a percent.
David Spika is president and chief investment officer at GuideStone Capital Management.
"Today, it's just a continuation of what started on Friday. Powell's speech at Jackson Hole, where he was very clear that the Fed is going to continue to be very aggressive. The market realized there is no Fed pivot coming and realized that they were ahead of themselves in that regard, and selling started. And selling is going to continue because higher interest rates is not positive for financial assets and it's not positive for economic growth. And it will likely lead to recession."
All of the 11 S&P 500 sectors ended in negative territory, with energy stocks seeing big losses as oil prices settled down more than 5% on concerns that slowing of global economies could sap demand.
Rate-sensitive mega-cap growth and tech stocks, including Apple and Tesla, saw substantial losses, dragging down the S&P 500, which briefly fell below a key technical level that most analysts see as support for the benchmark index.
But Best Buy broke the trend, rising about a percent and two thirds as the biggest gainer on the S&P 500 after it reported a smaller-than-expected drop in quarterly comparable sales thanks to steep discounts.