US markets closed lower on Monday, amid investor concerns over robust data from the services that could affect the Federal Reserve’s interest rate policy, while Tesla shares fell on reports of a production cut in China.
The role of the electric car manufacturer Tesla slumped after reports of plans to cut production from December model Y at its Shanghai plant, up more than 20% from the previous month.
This movement weighed on the nasdaqsending the technology index to its second consecutive decline.
Broadly, indices suffered losses after data showed US service industry activity unexpectedly rebounded in November, with employment picking up, providing further evidence of underlying momentum in the economy.
The data came on the heels of reports last week that showed a job growth Y wage stronger than expected in November, defying hopes that the Fed could reduce the pace and intensity of its rate hikes, amid recent signs of a inflation ebb.
Investors see a probability of 89% The US central bank is expected to raise interest rates by 50 basis points next week to a range of 4.25%-4.50%, with rates peaking at 4.984% in May 2023. FEDWATCH
The Fed’s Federal Open Market Committee meets on December 13-14, for its last meeting at the end of a volatile year in which the central bank tried to stop inflation from rising to multi-decade highs with record increases in Interest rates.
According to preliminary data, the S&P 500 lost 72.87 points, or 1.79%, to close at 3,998.83 points, while the Nasdaq Composite it lost 219.42 points, or 1.93%, to 11,242.07 units. The Industrial Average Dow Jones it fell 486.34 points, or 1.41%, to 33,943.54 units.
(With information from Reuters)
US inflation slowed to 6.0% year-on-year in October, according to the Fed’s preferred index
The United States added 263 thousand jobs in November and the unemployment rate remains at 3.7%
US consumer confidence falls to four-month lows