Stocks fall after three-week selloff

US stocks slumped on Tuesday as traders returned to Wall Street for a shorter week after Labor Day.

The benchmark S&P 500 index fell 0.3%, while the Dow Jones industrial average fell by the same margin, or about 100 points. The tech-heavy Nasdaq Composite fell 0.5%. The moves come after three straight weeks of losses for the major averages.

“The market will enter the first full week of September looking to snap a three-week losing streak as investors continue to digest the Fed’s ‘we won’t drift’ inflation-fighting message,” said Chris Larkin, managing director of trading. from Morgan Stanley’s. E*TRADE said in a note on Tuesday.

“Bulls hoping for a rally will do so during a shorter Labor Day week that has historically paralleled September and its history of underperformance – losses have been a bit less frequent over the past three decades, but volatility has been older.”

Treasuries rose as investors await the next Federal Reserve policy move later this month. The benchmark 10-year note rose to 3.269%, while the 2-year Treasury note rose to 3.449%.

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

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

Bed Bath & Beyond Stock (bbby) fell nearly 13% at the start of the Tuesday morning session. Last week, the home goods retailer announced in a strategic update that it would lay off staff and close approximately 150 stores as part of an effort to turn around its struggling business.

Reports emerged this weekend that the company’s chief financial officer, Gustavo Arnal he committed suicide on friday afternoon after falling from a skyscraper in the Tribeca area of ​​New York known as the “Jenga” tower. Before his death, Arnal was named in a $1.2 billion shareholder lawsuit that alleged involvement in a “pump and dump” scheme.

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

“The company is in the early stages of evaluating the complaint, but based on current knowledge, the company believes the claims are unsubstantiated,” said a spokesperson for Bed Bath & Beyond told Yahoo Finance.

Acquisition of the digital world (DWACShares of ) plummeted more than 17% after the special-purpose acquisition company that was to merge with former President Donald Trump’s social media platform failed to garner enough shareholder support to extend the deadline to complete the deal. .

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

“The modest slowdown in job growth in August may be welcomed by the Fed, but it won’t prevent further sizable rate hikes in coming months,” said Nancy Vanden Houten and Kathy Bostjancic of Oxford Economics in a note on Friday. “Fed Chairman Powell made it clear last week that the FOMC plans to take rates into tightening territory to reduce inflation and prevent inflation expectations from being unleashed.”

Bank of America strategists led by Michael Hartnett warned on Friday of a “rapid inflation shock” and a “slow recessionary shock,” 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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