Stocks edged lower in morning trading on Wall Street
Thursday, continuing their losing run to a fifth straight day as investors
remain concerned about how the economy will hold up as the Federal Reserve
hikes interest rates to curb inflation.

The S&P 500 was down 42.35 points or 1.07% to 3,912.65
as of 10:14 am Eastern time. The Dow Jones Industrial Average fell 258.58
points or 0.82% to 31,251.85. The Nasdaq composite slipped 174.85 points or
1.48% to 11,641.36.

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The key indexes have closed lower for four consecutive
days. The latest wave of selling has erased much of the gains the market made
in July and early August.

Once again, technology stocks pulled the broader market
down. Nvidia plunged 8.3% after the chipmaker said the US government imposed
new licensing requirements on its sales to China.

Bank stocks also witnessed losses. Energy stocks fell along
with the price of US crude oil, which is coming off its third month of decline.
The moderate gains in communication stocks were overshadowed by losses
elsewhere.

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Smaller company stocks also declined. The Russell 2000
index was 38.68 points or 2.10% down at 1,805.40. Major European indexes fell
sharply and Asian markets also closed lower.

Bond yields surged. The yield on the 10-year Treasury,
which helps determine interest rates on mortgages and other consumer loans,
rose to 3.26% from 3.20% late Wednesday. The two-year Treasury yield, which
tends to track expectations for Fed action, rose to 3.52% from 3.50%.

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Treasury yields have been rising amid expectations for
higher interest rates, which the Federal Reserve has been increasing to control
the highest inflation in four decades.

Investors are concerned that the Fed could raise the
interest rate too high or too fast and put the already slowing economy into a
recession. Higher interest rates also impact investment prices, especially for
pricier stocks like technology companies.

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The S&P 500 ended August with a 4.2% loss after gaining
9.1% in July amid expectations that the central bank might be able to ease back
on raising interest rates following signs that inflation, while still high, was
leveling off.

Investors have been monitoring economic data for any
additional data that the economy is slowing down or that inflation may be
cooling or at least holding at its current level.

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Strong US employment data have raised expectations of more
interest rate hikes. According to the Labor Department report released on
Thursday, applications for unemployment benefits declined last week, a sign the
job market continues to shine despite a slowing US economy. The government’s
August jobs report will be released on Friday.