U.S. stocks were poised for their worst daily drop in two months Monday on fears that the recent rally was based on an overly optimistic view about the Federal Reserve’s pivoting away from sharply higher interest rates to fight inflation.How are stocks trading?
The Dow Jones Industrial Average
DJIA,
-1.97%
shed 652 points, or 1.9%, to hit 33,055.
The S&P 500 SPX fell 91 points, or 2.2%, to 4,137.
The Nasdaq Composite
COMP,
-2.51%
tumbled 324 points, or 2.6%, to 12,381.
Last week, the Dow Jones Industrial Average finished down by 54.31 points, or 0.2%, at 33,706.74. The S&P 500 closed down by 51.67 points, or 1.2%, at 4,228.48 on the week, while the Nasdaq Composite declined 341.97 points, or 2.6%, to 12,705.22. As of Friday, the Nasdaq Composite was up 19.3% from its mid-June low, but remained down 18.8% for the year to date.
What’s driving markets? Wall Street was on course for chunky declines as investors expressed wariness over a series of monetary, technical and seasonal factors. Dow industrials and the S&P 500 were on track for their worst drops since June 16, while the Nasdaq Composite was poised for its worst since June 28, according to Dow Jones Market Data. Until recent days, the benchmark S&P 500 had been rallying sharply off its mid-June low, partly on hopes that indi …