The Dow Jones Industrials came off its highs of the afternoon, but still beat Monday’s close by 36.31 points, to close Tuesday at 29,239.19, bolstered by jumps in Amgen and Walgreens Boots Alliance.
The S&P 500 lost 23.55 points to 3,588.84.
The NASDAQ Composite dumped 115.91 points, or 1.1%, to 10,426.19, its lowest close since July 2020. Tuesday’s losses notched the fifth day in a row of declines for both indexes.
Stocks fell off highs of the day and bond yields ticked up when the Bank of England said in the afternoon its market intervention will be over soon, and that pension funds have just three days to rebalance positions.
The moves came as investors look ahead to key inflation data that will inform how aggressively the Federal Reserve will hike interest rates to tame inflation.
On Wednesday, the producer price report will be released and followed by the September consumer price index Thursday. On Friday, September retail sales will give further insight into consumption.
JPMorgan CEO Jamie Dimon on Monday warned that the U.S. would likely fall into a recession over the next “six to nine months,” and said the S&P 500 could fall another 20% depending on whether the Federal Reserve engineers a soft or a hard landing for the economy.
Gig economy stocks fell sharply on Tuesday after the U.S. Department of Labor released a proposed rule that could cause the companies to classify drivers employees instead of independent contractors.
Treasury prices settled back, raising yields to 3.94% from Monday’s 3.92%. Treasury prices and yields move in opposite direction.
Oil prices dipped $2.68 to $88.45 U.S. a barrel.
Gold prices faltered $2.10 to $1,673.10 U.S. an ounce.