S&P 500 rises as Wall Street tries to recover from 3-day slump
U.S. stocks rose on Wednesday as Wall Street tried to break a losing streak that extended into its third day and ended August on a positive note.
The Dow Jones Industrial Average added 53 points, or 0.1%. The S&P 500 advanced 0.3%. The Nasdaq Composite outperformed, rising 0.6%.
Shares of Chewy fell more than 11% premarket after the pet products retailer issued weak earnings forecasts. Shares of HP Inc fell 6% after the company missed earnings estimates.
Investors have sold off since Friday after hawkish remarks by Federal Reserve Chairman Jerome Powell. More recently, New York Fed President John Williams called for “a somewhat restrictive policy to slow demand.”
The selloff on Wall Street unfolded on Tuesday, with the Dow Jones Industrial Average slipping almost 1%. The Nasdaq Composite fell 1.1% and the S&P 500 fell 1.1%, dropping below 4,000 for the first time since late July. All major averages were on track to end August with losses.
Despite Tuesday’s sell-off and hawkish remarks from the Fed, some investors are hopeful that the rate hike cycle may be coming to an end.
“We think we’re close to the end of this rate hike cycle, but that certainly depends on a lot of things,” Sand Hill Global Advisors chief investment officer Brenda Vingiello said on Tuesday’s “Closing Bell: Overtime.” CNBC. . “No doubt the Fed will raise rates in September, and probably twice more this year, but they will have done a lot by then and we will be in restrictive territory.”
Wednesday is the last trading day of the month. The Dow and S&P 500 both fell more than 3% in August, while the Nasdaq lost 4% during this period.