Stocks fall to start September as market reels on worries of rising rates

US stocks fell on Thursday, the first day of September, as traders continued to worry about the potential for a Federal Reserve rate hike.

The Dow Jones Industrial Average fell 260 points, or 0.8%. The S&P 500 and the Nasdaq Composite fell 1.2% and 1.9% respectively. The major averages are each on track to end the week down around 3%.

The moves came like the 2-year US Treasury yield reached 3.516%, the highest level since November 2007, at one point Thursday.

Nvidia shares also contributed to the losses, falling more than 8% after the chipmaker said US government restricts some sales to China.

US weekly jobless claims fell to 232,000 for the week ending August 27. That was weaker than expected by economists polled by Dow Jones. This is also down from the prior period and the lowest level since June 25.

The main averages come from four consecutive days of losses. On Wednesday, the last day of August, the Dow slipped almost 0.9%. The S&P 500 lost about 0.8% and the Nasdaq Composite fell about 0.6%.

The Dow Jones closed the month down about 4.1%, while the S&P and Nasdaq posted losses of 4.2% and 4.6%, respectively.

Investors are wondering if equities will challenge June lows again in September, a historically poor month for markets, after weighing recent hawkish comments from Fed officials that show no signs of easing rate hikes. ‘interest.

“If we retest the lows, I think it will happen in September,” SoFi’s Liz Young said Wednesday on CNBC’s “Closing Bell: Overtime.” However, she added, ‘I think to do that would require something to get significantly worse than it was on June 16,’ when stocks bottomed out like earnings revisions. which are worse than investors expect.

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