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Indexes Down Sharply Over Fears of More Hikes

Stocks sold off Wednesday, continuing the sluggish start to September, as concerns mounted that the Federal Reserve may not be done hiking interest rates.

The Dow Jones Industrials dumped 197.59 points by the closing bell Wednesday at 34,444.38.

The S&P 500 index slid 31.23 points to 4,465.60.

The NASDAQ index reversed 148.48 points, or 1.1%, to 13,872.47.

Pressured by rates, technology stocks underperformed. The biggest laggards included Nvidia and Tesla, falling more than 3% each. Apple dropped roughly 3%, weighing on the Dow. Amgen and Boeing contributed to the losses, falling more than 1% each.

On the economic front, the prices component of the ISM services index rose 2.1 percentage points to 58.9% in August, representing the share of companies reporting increases as well a four-month high.

That follows the prices component of the ISM manufacturing index jumping 5.8 points to 48.4%. While readings below 50% represent contraction in the ISM survey, the big one-month jump is a reversal from the recent trend. The prices-paid component also rose slightly more than expected, further fueling rate hike fears.

Meanwhile, the latest Beige Book from the Federal Reserve indicated that the U.S. economy saw modest growth from in July and August,
and slowing price growth.

Prices for the 10-year Treasury were mildly lower, raising yields to 4.29% from Tuesday’s 4.27%. Treasury prices and yields move in opposite directions.

Oil prices took on 98 cents to $87.67 U.S. a barrel.

Gold prices dropped 11 dollars to $1,941.60 U.S. an ounce.

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