Stocks fell on Wednesday as Wall Street struggled to snap a three-day losing streak and end August on a high note.
The Dow Jones Industrial Average fell 115 points, or 0.4%. The S&P 500 fell 0.3% and the Nasdaq Composite lost 0.4%.
All major averages are on track to end what has been a solid month for bearish stocks. Markets had been selling strongly since Friday after hawkish remarks by Federal Reserve Chairman Jerome Powell. More recently, Cleveland Fed President Loretta Mester said she expects benchmark interest rates move above 4% early next yearwhile New York Fed President John Williams called for “somewhat restrictive policy to slow down demand.“
The selloff on Wall Street unfolded on Tuesday, with the Dow Jones Industrial Average slipping almost 1%. The Nasdaq Composite fell 1.1% and the S&P 500 fell 1.1%, dropping below 4,000 for the first time since late July. All major averages were on track to end August with losses.
“This volatility is really healthy and constructive,” Sanctuary Wealth Chief Investment Officer Jeff Kilburg told CNBC. “It doesn’t feel good, and the speed the Fed has injected into this process of de-risking has taken a lot of investors’ breath away, but… There are a lot of signs that are more optimistic than negative” – like rising Treasury yields, he said.
“For the market to go from 3,600 to 4,300 in 19 trading sessions, that’s not sustainable,” he added. “Seeing the market come back and the S&P 500 filling volume around 4,000 is really constructive and allows us to have a base taking another step higher against the backdrop of an earnings season that is better than expected and the consumer sentiment slowly picking up.”