The S&P 500 index fell 1.3% last week, led by the industrial and materials sectors, as interest-rate concerns weighed on investor sentiment.
The early September slump follows a 1.8% drop in August as investors have been pulling back in recent weeks from the optimism that drove strong gains in the first half of the year. Even with the recent declines, the S&P 500 is up 16% for the year to date.
Investors have been focused on the Federal Reserve’s next policy moves. The central bank’s policy-setting committee isn’t expected to raise rates at its meeting this month, but speculation is increasing that it may raise rates at its late October/early November meeting.
The industrial sector had the largest percentage drop this week, falling 2.9%, followed by a 2.4% decline in materials and a 2.3% slip in technology. However, two sectors managed rallies with energy up 1.4% and utilities climbing 0.9%.
This week, economic data will be light earlier in the week, but key inflation readings will follow with the August consumer price index expected on Wednesday and the August producer price index set to be released on Thursday. August retail sales are also due on Thursday, followed by August industrial production and capacity utilization on Friday.
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