US Stock Market: DJIA, S&P500 and Nasdaq red in early trade on Tuesday

Wall Street stocks fell in morning trading on Tuesday,
continuing a losing run into a holiday-shortened week. The S&P 500 fell
30.10 points or 0.77% to 3,894 as of 10:07 am Eastern time. The benchmark index
is coming off its third straight losing week.

The Dow Jones Industrial Average fell 197.49 points or
0.63% to 31,120.95. The Nasdaq composite fell 135.48 points or 1.16% to
11,495.38. US stock markets were closed on Monday for the Labor Day holiday.

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Technology companies and retailers contributed to much of
the losses. Chipmaker Nvidia slipped 1.4% and Amazon lost 1.7%.

Bed Bath & Beyond fell 15% after the death of its chief
financial officer (CFO) Gustavo Arnal. The company has been struggling with a
prolonged sales slump and executive turnover.

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Digital World Acquisition, the company that wants to take
Trump Media public, tumbled 18.5% following reports it didn’t receive enough
shareholder support for an extension to close the deal.

ADT surged 11.7% after State Farms said it was acquiring a
15% stake in the home security company.

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Trading started at the New York Stock Exchange after
Ukrainian President Volodymyr Zelensky virtually rand the opening bell. He
pitched a program to attract large-scale investments to his country as it
continues to fight Russian forces.

Markets have been falling in recent weeks and losing much
of the gains made in July and early August as inflation remains high. The
Federal Reserve stays on track to continue raising interest rates to try and
control stubbornly persistent high prices. The key concern is that the Fed
might raise rates too high or too quickly on an already slowing economy,
potentially causing a recession.

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Bond yields surged. The yield on the 10-year Treasury,
which helps determine interest rates on mortgages and other loans, rose to 3.33%
from 3.19% late Thursday. The two-year Treasury yield, which tends to track
expectations for Fed action, increased to 3.52% from 3.39%.

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Investors have been closely monitoring economic data for
hints that inflation might be easing, which traders expect will give the Fed a
reason to ease up on rate hikes. The Fed has already hiked the rate by another
0.75 percentage points at its next meeting later this month, according to CME
Group.

The Fed has made it clear that it intends to keep
increasing interest rates until it is sure that inflation is easing.