Wall Street fell in early trading on Tuesday, following three straight sessions of losses, on growing speculation that the Federal Reserve could raise interest rates as soon as September.
Concerns about a rate hike pushed the blue-chip Dow index slipped into negative territory for 2015 on Monday, while the S&P 500 and Nasdaq touched their lowest levels in over a month.
Data on Monday showed U.S. small business confidence rose to a five-month high in May, with owners expecting a solid improvement in profits, which bodes well for the economy’s prospects in the months ahead.
Investors will also keep an eye on job openings and labor turnover data for April. Job openings are expected to have increased from the previous month. The data is due at 10:00 a.m. ET.
The sell off in U.S. stocks in the past few sessions followed a series of encouraging data reports, including stronger-than-expected May jobs data on Friday, that prompted speculation of a rate hike in September, sooner than some expected.
“The market needs to pullback from a technical view,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
“High valuations are a risk to market and we may see a short-term correction.”
The sell off in U.S. markets on Monday spread to the global market, with European shares slipping to a 3-1/2-month low on Tuesday.
Concerns about Greece continued to weigh, with Athens handing its creditors new proposals on unlocking funds as time runs out to reach a deal to prevent the country from going bankrupt.
At 9:47 a.m. ET the Dow Jones industrial average DJI was down 25.46 points, or 0.14 percent, at 17,741.09, the S&P 500 SPX was down 3.41 points, or 0.16 percent, at 2,075.87 and the Nasdaq Composite IXIC was down 26.14 points, or 0.52 percent, at 4,995.49.
Six of the 10 major S&P 500 sectors were lower, with the technology index’s .SPLRCT 0.63 percent decline leading the losses.
Apple [AAPL.O] fell 1.2 percent to $126.25 and was the biggest drag on the S&P and the Nasdaq, a day after the launch of its streaming music service, Apple Music.
Lululemon [LULU.O] shares rose 7.1 percent to $66.15 after the Canadian yogawear retailer raised its full-year revenue and earnings forecast.
Sage Therapeutics[SAGE.O] jumped 13.6 percent to $84.40 after its experimental injectable drug was found effective in treating postpartum depression.
Burlington Stores [BURL.N] fell 9.2 percent to $48.87 after the off-price retailer reported weaker-than-expected quarterly same-store sales.
Declining issues outnumbered advancers on the NYSE by 1,611 to 1,099, for a 1.47-to-1 ratio on the downside. On the Nasdaq, 1,637 issues fell and 638 advanced for a 2.57-to-1 ratio favoring decliners.
The S&P 500 index showed two new 52-week highs and four new lows while the Nasdaq recorded 24 new highs and 13 new lows.
SOURCE#Reuters#
