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S&P 500 index back near two-year lows
Airlines, cruises fall on cancellations due to Hurricane
CarMax slumps after missing second-quarter expectations
Indexes: Dow -2.17%, S&P 500 -2.72%, Nasdaq -3.62%
Sept 29 (Reuters) - Wall Street tumbled on Thursday on
worries that the Federal Reserve's aggressive fight against
inflation could hobble the U.S. economy, and as investors
fretted about a rout in global currency and debt markets.
With tech-related heavyweights Tesla, Apple
and Nvidia slumping 5% or more, the Nasdaq
was near its lowest closing level of 2022, set in
The S&P 500 was on track for its lowest close since
November 2020. It has lost 8% in September.
A sell-off in U.S. Treasuries resumed as Fed officials gave
no indication the U.S. central bank would moderate or change its
plans to aggressively raise interest rates to bring down high
Cleveland Fed President Loretta Mester said she does not see
distress in U.S. financial markets that would alter the central
bank's campaign to lower inflation through rate hikes that have
taken the Fed funds rate to a range of 3.0% to 3.25%.
Data showed the number of Americans filing new claims for
unemployment benefits fell to a five-month low last week as the
labor market remains resilient despite the Fed's aggressive
interest rate hikes.
"Good news is bad news in that today's job number again
reiterates that the Fed has a long way to go," said Phil
Blancato, head of Ladenburg Thalmann Asset Management in New
York. "The fear in the marketplace is that the Fed is going to
push us into a very deep recession, which will cause an earnings
recession, which is why the market is selling off."
The yields on many Treasuries, which are considered
virtually risk-free if held to maturity, now dwarf the S&P 500's
dividend yield, which recently stood at about 1.8%, according to
In afternoon trading, the Dow Jones Industrial Average
was down 2.17% at 29,041.04 points, while the S&P 500
lost 2.72% to 3,617.89.
The Nasdaq Composite dropped 3.62% to 10,651.56.
All of the 11 S&P 500 sector indexes dropped, with consumer
discretionary tumbling 4% as automobile stocks
CarMax Inc slumped over 20% after the used-car
retailer missed expectations for second-quarter results, hurt by
consumers cutting spending amid inflation, rising interest rates
and higher car prices.
General Motors Co and Ford Motor Co also took a
hit, each dropping more than 6%.
Airline carriers and cruise operators fell on canceled or
delayed trips after Hurricane Ian hit Florida's Gulf Coast with
American Airlines, United Airlines Holdings
and Delta Air Lines each fell more than 4%.
Cruise ship companies Norwegian Cruise Line Holdings Ltd
and Carnival Corp fell 6.4% and 7.8%,
Declining issues outnumbered advancing ones on the NYSE by a
7.64-to-1 ratio; on Nasdaq, a 4.12-to-1 ratio favored decliners.
The S&P 500 posted no new 52-week highs and 100 new lows;
the Nasdaq Composite recorded six new highs and 447 new lows.
(Reporting by Susan Mathew, Ankika Biswas and Shreyashi Sanyal
in Bengaluru; Additional reporting by Medha Singh; Editing by
Anil D'Silva, Arun Koyyur and Jonathan Oatis)