By Yasin Ebrahim
Investing.com -- The S&P 500 pared some gains Monday as tech eased from session highs amid concerns about an increasingly hawkish Federal Reserve at a time when the slowdown in the economy is expected to pick up pace.
Tech gave up its intraday gains, pressured by an ongoing climb in Treasury yields as Fed members suggest measures to slow growth including rate hikes increase the chance of the economy falling into recession.
Atlanta Federal Reserve president Raphael Bostic said the Fed “still has a ways to go” to bring down inflation. Bostic’s remarks come hours after Boston Fed President Susan Collins said higher unemployment would be needed to help curb inflation.
Apple (NASDAQ: AAPL ), however, weathered the storm following positive commentary on iPhone demand from JPMorgan.
JPMorgan cited the Wave7 August survey showing Apple’s new product line is expected to fare better than the iPhone 13.
Utilities, a bond-proxy that is less attractive in a rising rate environment, also played a role in the market selloff.
Energy fell more than 2% as oil prices continued to tumble on worries that worsening global growth will further dent energy demand.
“At current levels, it appears the market is now pricing-in the typical impact of a deep recession,” ANZ Research said in a recent note, though added that the selloff in oil “could see OPEC intervene again.”
Consumer stocks, however, were the relatively outperforming sector on the day, lifted by a surge in casino stocks after Macau said it would resume visitation access from Mainland China through tours and e-visas.
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