Eight of the S&P 500’s 11 subsectors were in the red, with the energy index leading the declines. The real estate sector, sensitive to rates, was down 1.4%.
Wall Street’s main indexes fell on Tuesday after better-than-expected housing sector data fueled fears of further interest rate hikes from the Federal Reserve.while Tesla was moving forward after Rivian agreed to adopt its charging standard.
The Dow Jones Industrial Average was down 228 points, or 0.7%, at 34,071.12. Meanwhile, the S&P 500 index was down 22.41 points, or 0.5%, at 4,387.18; and the Nasdaq Composite fell 40.51 points, or 0.3%, to 13,649.06 units.
Construction of single-family homes in the United States soared in May to its highest level in more than a year and permits issued for future buildings also rose, suggesting that the housing market may be turning around.
“We saw housing construction and permitting come in much stronger than expected and it looks like the economy remains stronger than expected despite all the calls for a possible recession,” said Sam Stovall of CFRA Research.
Tesla gains 2% after Reuters reported that Rivian Automotive has agreed to adopt its charging standard, boosting the electric vehicle giant’s bid.
Eight of the 11 S&P 500 subsectors were in the redwith the energy index at the head of the decreases. The real estate sector, sensitive to rates, was down 1.4%.
Traders now see a 72% chance the Fed will raise its key benchmark rates by 25 basis points in July, according to CMEGroup’s Fedwatch tool.
Investors will be watching for comments from Fed Vice Chairman Michael Barr throughout the day, and Fed Chairman Jerome Powell’s biannual monetary policy testimony before the House Finance Committee on Wednesday.
Source: Ambito
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