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US stocks fall as markets fret over interest rates
Economists are increasingly pessimistic about the potential for US policy makers to engineer a "soft landing" as central banks tighten monetary policy, reversing a after a long period of rock-bottom borrowing rates due to surging inflation.
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A Wall Street sign is seen outside of the New York Stock Exchange during morning trading on June 08, 2022 in New York City, US. (Getty Images/AFP/Michael M. Santiago)
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all Street stocks sagged Monday, fading after last week's positive run as markets weigh worries over the slowing economy and higher interest rates.
Economists are increasingly pessimistic about the potential for US policy makers to engineer a "soft landing" as central banks tighten monetary policy, reversing a after a long period of rock-bottom borrowing rates due to surging inflation.
The yield on the 10-year US Treasury note, a proxy for interest rate expectations, climbed to around 3.20 percent.
Beth Ann Bovino, chief economist for S&P Global Ratings, said she remained relatively hopeful about the 2022 outlook but that 2023 "is the bigger worry."
S&P has projected "a low-growth recession in 2023."
The Dow Jones Industrial Average finished down 0.2 percent at 31,438.26.
The broad-based S&P 500 shed 0.3 percent to 3,900.11, while the tech-rich Nasdaq Composite Index dropped 0.7 percent to 11,523.83.
Orders for US-made, big-ticket manufactured goods were surprisingly strong in May, helped by demand for autos and military aircraft, according to government data released Monday.
The increase points to solid demand even as US inflation rages at a 40-year high, but economists warn uncertainty caused by the war in Ukraine may cool business investment plans, which could tamp down orders in coming months.
Economic reports this week include a third reading of US economic growth in the first quarter, and a June manufacturing sector business survey.
Among individual companies, Digital World Acquisition slumped 9.6 percent after disclosing grand jury subpoenas into its proposed merger with the Trump Media & Technology Group.
Robinhood Markets jumped 14 percent following a report that cryto exchange FTX is exploring a bid for the online brokerage firm.
