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Tech, consumer discretionary pare back gains
Casinos jump as Macau allows tour groups after nearly 3
Indexes down: Dow 1.06%, S&P 0.99%, Nasdaq 0.53%
Sept 26 (Reuters) - Wall Street's main indexes extended
declines on Monday as investors continued to fret about the
Federal Reserve's aggressive policy tightening and its impact on
the U.S. economy.
The last two weeks have been rough for U.S. stocks, with the
Dow Jones Industrial Average coming within spitting
distance of a bear market in the previous session, after the
Federal Reserve signaled that high interest rates could last
through 2023 on Wednesday.
The S&P 500 index has shed almost all of its gains
made in the summer and is hovering near its mid-June closing low
of 3,666 hit on Friday.
The morning session kicked off with some hope of a rebound
after the Nasdaq index rose as much as 1.4%, only to
edge lower as a bounce in growth stocks proved short-lived.
Gains in sectors housing megacap growth companies, including
technology, consumer discretionary and
communication services, petered out by early
afternoon, with Apple Inc, Microsoft Corp,
Amazon.com Inc and Tesla Inc only up between
0.3% and 0.9%.
"Bargain hunters tend to step in when markets hit
year-to-date lows and that will typically drive those sorts of
bounces," said Randy Frederick, managing director of trading and
derivatives for Charles Schwab in Austin, Texas.
"Obviously, there are concerns about continued tightening of
the Fed policy, the next rate hike doesn't happen till early
November, but it's a virtual certainty that it will happen."
Trading sentiment was also hurt by dramatic moves in the
global forex market as the sterling hit an all-time low
on worries that the new British government's fiscal plan
threatened to stretch the country's finances to their limits.
That also added an extra layer of volatility to markets
worried about a global recession amid soaring prices. The CBOE
Volatility index, hovered near three month highs
At 12:41 p.m. ET the Dow Jones Industrial Average was down
314.77 points, or 1.06%, at 29,275.64, the S&P 500 was down
36.67 points, or 0.99%, at 3,656.56 and the Nasdaq Composite was
down 57.06 points, or 0.53%, at 10,810.87.
Shares of casino operators Wynn Resorts, Las Vegas
Sands Corp and Melco Resorts & Entertainment
jumped between 12.2% and 25.1% after Macau planned to open to
mainland Chinese tour groups in November for the first time in
almost three years.
Declining issues outnumbered advancers for a 4.43-to-1 ratio
on the NYSE and for a 2.24-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 87 new lows,
while the Nasdaq recorded 12 new highs and 424 new lows.
(Reporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru;
Editing by Anil D'Silva and Shounak Dasgupta)