US stocks fell on Tuesday, route deepening triggered by fears of prolonged monetary policy tightening by the Federal Reserve to combat inflation.
The S&P 500 fell 1 percent after a jump in early trade, extending losses after the benchmark index fell roughly 4 percent in consecutive losing days. The Dow Jones Industrial Average lost 175 points, or about 0.6 percent, and the tech-heavy Nasdaq Composite fell 0.7 percent.
The moves came after a set of upbeat economic data on the labor market and US consumers confirmed that the economy can withstand further rate hikes.
The Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS, showed that U.S. job vacancies jumped to 11.2 million last month, indicating continued labor market pressure as employers struggle to fill vacancies. Economists polled by Bloomberg had expected 10.375 million in July.
June’s data also reflected a sharp upward revision from 10.698 million opens to 11 million.
Data from the Conference Board on Tuesday morning also showed that US consumer confidence rose in August after three straight months of declines, as Americans eased their pessimism about the economy amid falling gas prices.
The index rose to 103.2 in August from a downwardly revised reading of 95.3 last month. Economists had called for a print of 98, according to Bloomberg data.
On the housing front, Standard & Poor’s CoreLogic Case–Shiller home price index showed an annual increase of 18.0% in June, down from 19.9% the previous month. The 20-City Composite rose 18.6% year-on-year, up from 20.5% the previous month.
Shares of Nicholas (NKLA) tumbled roughly 8% on Tuesday after the electric vehicle maker said it may sell shares to raise up to $400 million in production costs as it grapples with higher labor and raw material costs .
Bed Bath & Beyond Inc. (BBBY) shares tumbled nearly 4% after jumping 10% in early trading as investors await a strategic update from the company later this week. Meme stocks have soared this month and are on track for a record monthly gain in August after jumping more than 170%.
Shares of Chinese search engine Baidu (WILL BE) fell more than 8% after reporting quarterly revenue on Tuesday that beat estimates, boosted by growth in its cloud business. However, the company revealed its first annual contraction in quarterly revenue in two years.
“Stocks had a reasonable chance for a second straight week up last Thursday, but the bearish reaction to Powell’s speech in Jackson Hole pushed the market firmly into the red,” Chris Larkin, managing director of trading at Morgan Stanley’s E*TRADE, said in a note. “Although the week is heavy with economic data, Friday’s jobs report will be the most watched as investors and the Fed get another reading on the labor market.”
In commodity markets, oil prices fell amid renewed concerns that a global recession will reduce demand. West Texas Intermediate crude fell 2.7% to $94.39 a barrel, while Brent futures fell 3.4% to $101.48 a barrel.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc