Dow slumps 600 points Monday to wrap worst day since June as summer rally fades; European markets close lower as rate hike fears resurface; euro hits dollar parity
The Dow Jones Industrial Average fell sharply Monday, in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street.
The Dow fell 643.13 points, or 1.91%, to 33,063.61. The S&P 500 dropped 2.14% to 4,137.99, and the Nasdaq Composite tumbled 2.55% to 12,381.57, respectively. It was the worst day of trading since June 16 for the Dow and the S&P 500.
Tech stocks declined on concerns over more aggressive rate hikes from the Fed. Amazon fell 3.6%. Semiconductor stocks dropped with Nvidia down about 4.6%. Shares of Netflix were roughly 6.1% lower following a downgrade to sell from CFRA.
The pan-European Stoxx 600 provisionally ended down 1%, with autos falling 3.9% to lead losses as almost all sectors and major bourses traded in negative territory.
Novo Nordisk shares were up 5% to lead the Stoxx 600 by mid-afternoon, after the Danish pharmaceutical company announced positive results from a phase two trial of its drug CagriSema in people with type 2 diabetes.
At the bottom of the index, Just Eat Takeaway dropped 9% as investors took profits from a substantial rally at the end of last week, which came on the back of its 1.8 billion euro ($1.8 billion) sale of a one-third stake in Latin American delivery app iFood.
Source: CNBC, Investing.com