Shares of industrial and transportation companies fell amid concerns about rising interest rates and natural-gas costs.
Industrial and farm machinery maker Deere & Co. lowered its profit forecast for the year as rising production costs put pressure on profit margins, offsetting higher demand for farm equipment.
Underscoring inflation issues, German producer prices rose a staggering 37% from a year earlier in July, according to statistics office Destatis.
"It's just just another way of showing that the economic backdrop is clearly quite dicey when you're paying that much for commodity prices," said Ryan Detrick.
"That's the worry: if Germany gets the flu, the rest of Europe could get a cold," Detrick said.
Preparations are under way for Chinese leader Xi Jinping to travel to Central Asia to meet with Russia's Vladimir Putin and other leaders at a regional summit in mid-September, a visit that could enflame trade tensions between the U.S. and China, The Wall Street Journal reported.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-19-22 1703ET
