"While the Fed's definitely going to keep hiking its interest rates, I think there's zero question about that. The only question is how much and how fast." A survey from the Institute for Supply Management (ISM) showed the U.S. services industry picked up in August for the second straight month amid stronger order growth and employment, while supply bottlenecks and price pressures eased.
However, numbers from S&P Global showed services sector PMI fell short of flash estimates for August.
Traders see about 75 per cent chance of a third 75-basis-point rate hike at the Fed's policy meeting later this month.
Focus will be on Fed Chair Jerome Powell's speech on Thursday as well the U.S. consumer prices data next week for clues on the path of monetary policy.
Markets started September on a weak note as hawkish comments from Fed policymakers and data signaling momentum in the U.S. economy raised fears of aggressive interest rate hikes.
The benchmark S&P 500 closed at a six-week low on Friday as worries about the European gas crisis overshadowed relief from the monthly jobs data, which pointed to a slight easing of wage pressures. The index is down nearly 18 per cent so far this year, while the Nasdaq has shed nearly 26 per cent as rising interest rates hurt megacap technology and growth stocks.
Among the major S&P sectors, consumer discretionary and communication services fell the most, while defensive utilities and real estate rose.
At 12:17 p.m. ET, the Dow Jones Industrial Average was down 104.63 points, or 0.33 per cent, at 31,213.81, the S&P 500 was down 9.49 points, or 0.24 per cent, at 3,914.77, and the Nasdaq Composite was down 49.39 points, or 0.42 per cent, at 11,581.47.
The CBOE Volatility index, also known as Wall Street's fear gauge, rose to 26.5 points.
Bed Bath & Beyond Inc fell 16.6 per cent after Chief Financial Officer Gustavo Arnal fell to his death from New York's Tribeca skyscraper.
Declining issues outnumbered advancers for a 1.91-to-1 ratio on the NYSE and 1.72-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and 22 new lows, while the Nasdaq recorded 16 new highs and 253 new lows.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app