by Sinéad Carew and Shristi Achar A

(Reuters) – The New York Stock Exchange ended lower on Wednesday after stronger-than-expected data from the U.S. services sector fueled concerns about lingering inflation and interest rates staying high for longer than expected, while Apple’s downturn weighed.

The Dow Jones index fell 0.57%, or 198.78 points, to 34,443.19 points.

The broader S&P-500 fell 31.35 points, or 0.70%, to 4,465.48 points.

The Nasdaq Composite fell for its part by 148.48 points (1.06%) to 13,872.47 points.

According to a survey by the Institute for Supply Management (ISM) published today, the growth of the services sector in the United States accelerated in August at a rate above consensus and the costs of inputs for companies in the sector have progressed.

The main Wall Street indices reacted little to the publication, in the afternoon, of the “beige book” of the Federal Reserve (Fed) in which the American central bank notes “modest” economic growth and a slowdown in the economy. inflation in much of the United States.

The vast majority of traders are betting on a pause in the rate hike campaign after the Fed’s monetary policy meeting on September 19-20. The assumption that rates will stay at their current level in November is expected by more than half of traders, according to CME FedWatch Tool.

The recent rebound in oil prices has also fueled fears that lingering inflationary pressures are prompting the Fed to maintain its aggressive stance on interest rates.

This assumption puts particularly pressure on high-growth stocks, which are more sensitive to interest rates, while bond yields have risen.

Boston Fed President Susan Collins warned during the day that the Fed had to “act with caution” on its next monetary measures.

“The stronger-than-expected data from the ISM on services shows that investors are still not really good at reading the post-pandemic tea leaves,” commented Carol Schleif, chief financial officer. BMO investments in Minneapolis.

While investors have long hoped for an end to the rate hike cycle, this data shows the resilience of the US economy and persistence of inflation that is not falling “as fast as it would take for the The Fed is starting to cut rates in the near future,” she added.

Nine of the eleven major sectors of the S&P-500 ended the session in the red, including technology, which recorded the largest decline (1.4%).

On the stock side, Apple fell 3.6% and weighed on major Wall Street indexes after reports that China has banned government agency officials from using iPhones and other devices for work. products abroad.

Other high-growth stocks also fell, with Tesla, Amazon and Nvidia losing between 1.6% and 3.8%, alongside rising ten-year and two-year US Treasury yields.

Lockheed Martin fell 4.8% after lowering its delivery forecast for its F-35 fighter jets.

( Jean Terzian)

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