Markets Drop for Second-Straight Day on Fed Hike Fears

Last Friday’s losses for U.S. equities carried over into the new week, on concerns that recent data showing strength in the U.S. economy will allow the Fed to continue its inflation-fighting interest rate hikes. The Nasdaq lost 1%, the S&P 500 dropped 0.6%, and the Dow slid 0.1%. Anticipation of rising rates sent bond yields jumping for a second straight session.

Stocks that are sensitive to increased borrowing costs lost ground. Tech stocks, including Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Cisco Systems (CSCO), and Salesforce (CRM), fell. Intel (INTC) shares sank 4%. Shares of PulteGroup (PHM), KB Home (KBH), and other home builders dropped. Nike (NKE), Walgreens Boots Alliance (WBA), and Walmart (WMT) were among the retailers whose shares declined.

Tyson Foods (TSN) shares tumbled as the big meat processor’s profit and sales missed forecasts, and it warned about full-year operating margins. Shares of Newmont Corporation (NEM) were down after the gold miner increased its offer to buy Australia’s Newcrest Mining. Shares of video game makers Take-Two Interactive (TTWO) and Activision Blizzard (ATVI) lost ground ahead of their after-the-bell earnings reports.

Weyerhaeuser (WY) shares dipped after BMO Capital lowered its price target. Shares of Dell Technologies (DELL) were lower as the PC maker announced thousands of layoffs and said market that conditions are continuing to erode.

Tesla Share Advance

Catalent (CTLT) was the best-performing stock in the S&P 500 on a report that Danaher Corporation (DHR) is considering acquiring the pharmaceutical solutions firm. Shares of Loews (L) climbed as the multifaceted holding company’s profit and sales increased. Tesla (TSLA) shares gained after Wedbush raised its price target. Shares of Campbell Soup (CPB), Hershey (HSY), and other food makers rose.

Oil futures added more than 1%. Gold prices were higher. The U.S. dollar advanced against the euro, pound, and yen. Major cryptocurrencies traded up.