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Wall Street falls on fears of Fed rate hikes fueled by US service data

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Indices generally suffered as data showed US service sector activity unexpectedly picked up in November (Image: Pixabay)

The stock markets of United States ended lower on Monday, as investors spooked by better-than-expected data from the US services sector reassessed whether the Federal Reserve could increase the rate fees longer, while the shares of the Tesla 🇧🇷TSLA) fell on reports of a production cut in China🇧🇷

The electric vehicle maker fell 6.4% after unveiling plans to cut December production of the Model Y at its Shanghai factory by more than 20% from the previous month.

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That move weighed on the Nasdaq, where Tesla was one of the biggest losers, pushing the tech index to its second consecutive decline.

Indices generally suffered as data showed that US service sector activity unexpectedly picked up in November as a recovery in employment provided further evidence of underlying momentum in the economy.

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O Dow Jones 🇧🇷DJI) fell 1.4% to 33,947.1 points. O S&P 500 🇧🇷SPX) lost 1.79% to 3,998.84 points. O nasdaq 🇧🇷US100) fell 1.93% to 11,239.94 points.

Energy was among the S&P’s worst performing sectors, down 2.9%.

The sector was weighed down by more than 10% lower US natural gas futures on Monday, with the outlook dimming due to milder weather forecasts and the delayed restart of the Freeport liquefied natural gas export plant.

The financial sector was also hit hard and fell 2.5%. While bank profits are typically driven by rising interest rates, they are also sensitive to concerns about bad loans or slowing loan growth amid an economic slowdown.

Source: Moneytimes

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