U.S. stocks were lower on Tuesday as traders returned to Wall Street for a holiday-shortened week after Labor Day.
The benchmark S&P 500 fell 0.7%, while the Dow Jones Industrial Average fell by the same margin, or about 230 points. The tech-heavy Nasdaq Composite led losses, falling more than 1%. The moves come after three straight weeks of losses for the major averages.
“The market will enter the first full week of September trying to snap a three-week losing streak as investors continue to buy into the Fed’s ‘we won’t be sidetracked’ message to fight inflation,” Chris Larkin, managing director of trading at Morgan Stanley’s E*TRADE said in a note on Tuesday.
“Bulls hoping for a rebound will do so during the shortened Labor Day week, which has historically paralleled September and its track record of underperformance: Losses have been somewhat rarer over the past three decades, but volatility is more -tall.’
Treasuries rose as investors await the Federal Reserve’s next policy move later this month. The benchmark 10-year note rose to 3.269%, while the 2-year Treasury rose to 3.449%.
Oil prices eased after a temporary rally following OPEC+’s first supply cut in more than a year as the group works to manage global crude markets. West Texas Intermediate crude was down 0.5% at $86.44 a barrel, while Brent futures were down 0.2% at $92.81.
In the cryptocurrency markets Bitcoin (BTC-USD) fell below the $20,000 level again.
Shares of Bed Bath & Beyond (BBBY) plunged 18% in the early session on Tuesday morning. Last week, the home goods retailer announced in a strategic update that it would cut staff and close approximately 150 stores as part of efforts to turn around its struggling business.
Reports emerged this weekend that the company’s chief financial officer, Gustavo Arnal killed himself on Friday afternoon after falling from a skyscraper in New York’s Tribeca neighborhood known as the Jenga Tower. Before his death, Arnal was named in a $1.2 billion shareholder lawsuit alleging he was involved in a “pump and dump” scheme.
“The company is in the early stages of evaluating the complaint, but based on current knowledge, the company believes the allegations are without merit,” a spokesperson for Bed Bath & Beyond told Yahoo Finance.
Acquiring a Digital World (DWAC) shares fell more than 17% after the special-purpose acquisition company set to merge with former President Donald Trump’s social media platform failed to garner enough support from shareholders to extend the closing deadline of the transaction.
Tuesday’s moves come after the Labor Department released its latest monthly jobs report for August on Friday. The U.S. economy added 315,000 jobs last week after the unemployment rate rose to 3.7 percent, according to government data.
“A moderate slowdown in employment growth in August may be welcome by the Fed, but will not prevent further significant rate hikes in the coming months,” Oxford Economics’ Nancy Vanden Houten and Kathy Bostiancic said in a note on Friday. “Last week, Fed Chairman Powell made it clear that the FOMC plans to raise rates into restrictive territory to reduce inflation and prevent inflation expectations from stalling.”
Bank of America strategists led by Michael Hartnett warned on Friday of a “rapid inflation shock” and a “slow recession shock” as investors expect continued monetary tightening by the Federal Reserve.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc