US stocks end lower on concerns over Fed-induced pain
US stocks closed lower on Monday, adding to last week's sharp losses on nagging concerns about the Federal Reserve's determination to aggressively hike interest rates to fight inflation even as the economy slows. Fed Chair Jerome Powell said on Friday the US economy would need tight monetary policy "for some time" before inflation is under control, dashing hopes the Fed might pivot to more subdued rate hikes after recent data suggested price pressures were peaking. The Dow Jones fell 0.6 percent to 32,099, the S&P 500 lost 0.7 percent to 4,030 and the Nasdaq dropped 1 percent, to 12,017. Megacap technology and growth stocks such as Apple, off 1.37 percent, and Microsoft, down more than 1 percent, were among the biggest drags.  Energy stocks, up 1.54 percent were a bright spot as crude prices jumped about 4 percent on possible OPEC+ output cuts and conflict in Libya. Bristol Myers Squibb slid 6.24 percent after its drug candidate for preventing ischemia strokes missed the main goal in a mid-stage trial. The two-year Treasury yield, which is particularly sensitive to interest rate expectations, briefly touched a 15-year high, while the closely watched yield curve measured by the gap between two and 10-year yields remained firmly inverted. An inversion is considered by many to be a reliable signal of a looming recession. Investors will be keeping an eye on nonfarm payroll data due out on Friday. Any signs of a slowdown in the labour market might take pressure off the Fed to continue with outsized rate hikes. (Reuters)