Major averages close about 1% lower as yields rise ahead of Fed rate decision; European markets close 1% lower as Fed meeting gets underway; Fortum shares up 9%
Stocks tumbled on Tuesday as the sell-off on Wall Street mounted and investors braced for another large rate hike due out Wednesday from the Federal Reserve.
The major averages moved off their lows as the final hour of trading kicked off, with the Dow Jones Industrial Average last down 250 points, or 0.8%. The S&P 500 shed 0.87% and the Nasdaq Composite slid 0.7%.
Meanwhile, Ford shares slumped after announcing that supply chain issues would cost an extra $1 billion in the third quarter.
Shares of vaccine makers BioNTech, Moderna and Novavax rebounded, gaining Tuesday after falling Monday when President Joe Biden made a comment that the pandemic was over.
Shares of health company Humana gained 1% Tuesday and touched a 52-week high a day after the company raised its earnings guidance for the fiscal year. The company was also upgraded by Morgan Stanley, who said it could be the top retail drug plan for Medicare Advantage.
In other economic news, housing market data released Tuesday showed an unexpected jump in starts for August, although building permits saw the biggest decline since April 2020.
The pan-European Stoxx 600 ended down 1.1% provisionally, giving back opening gains of more than 0.9%.
There were some big share price moves in Europe on Tuesday. Swiss biotech company Bachem Holding surged 12% to lead the Stoxx 600 by mid-afternoon after signing two new peptide contracts.
Source: CNBC, Investing.com