US STOCKS-Wall St pounded as investors grapple with higher rates

Immunovant

26/09/2023 21:00

(For a Reuters live blog on U.S., UK and European stock
markets, click  LIVE/  or type LIVE/ in a news window.)

        * 
      All 11 S&P 500 sectors sink
    

        * 
      Moody's warns government shutdown bad for U.S. credit
    

        * 
      Amazon.com shares drop as U.S. files antitrust lawsuit
    

  
 (Updates at 4 p.m. ET)
    By Lewis Krauskopf, Ankika Biswas and Shashwat Chauhan
       Sept 26 (Reuters) - Wall Street's main indexes ended
sharply lower on Tuesday as 10-year Treasury yields held their
multi-year highs, with investors still wrestling with prospects
for a long period of high interest rates and the economic
fallout.
    Adding to investor anxiety was the potential of a partial
U.S. government shutdown by the weekend, which ratings agency
Moody's warned would harm the country's credit.
    Benchmark 10-year Treasury yields have climbed to 16-year
highs in the wake of the Federal Reserve's hawkish longer-term
rate outlook last week.
    "We continue to adjust to the higher interest rates," said
Brad McMillan, chief investment officer for Commonwealth
Financial Network.
    "What you are getting is increasingly a sense that the
market is overvalued. ... There's a real sense out there that
this isn't sustainable, and buyers are being scared away."
    According to preliminary data, the S&P 500  .SPX  lost 63.77
points, or 1.47%, to end at 4,273.67 points, while the Nasdaq
Composite  .IXIC  lost 206.02 points, or 1.55%, to 13,065.30.
The Dow Jones Industrial Average  .DJI  fell 388.75 points, or
1.14%, to 33,618.13.A
    All 11 S&P 500 sectors ended lower. The heavyweight tech
sector  .SPLRCT  dropped sharply as did the rate-sensitive
utilities  .SPLRCU  and real estate  .SPLRCR  groups.
    Megacap stocks that have propelled indexes higher this year
mainly dragged on Tuesday.
    Amazon.com  AMZN.O  shares dropped as the U.S. Federal Trade
Commission filed a long awaited antitrust lawsuit against the
online retailer.
    Investors are focused on Friday's personal consumption
expenditures price index for a fresh view of the inflation
picture. This week also brings other data including on durable
goods and second-quarter gross domestic product, as well as
remarks by Fed policymakers such as Chair Jerome Powell.
    In company news, Immunovant  IMVT.O  shares surged after
early-stage data from the drug developer's experimental antibody
treatment exceeded analysts' expectations.

 (Reporting by Lewis Krauskopf in New York, Ankika Biswas and
Shashwat Chauhan in Bengaluru; Editing by Maju Samuel and
Richard Chang)
 ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters
Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net,
Twitter: @LKrauskopf))