US Stocks Prepare for Volatile Monday Amid Interest Rate Hike Fears
US stock market investors are bracing for a potentially volatile session on Monday as they weigh the possibility of another interest-rate hike against continued strength in the US economy.
The latest trading signals suggest a cautious start could be in store, with investors reassessing the probability of a September rate increase following Fed Chair Kevin Warsh's comments at Jackson Hole. The two-year US Treasury yield climbed to 4.34%, its highest level in about a month, which can create pressure on growth and technology stocks by increasing borrowing costs.
The Dow Jones Industrial Average fell 0.02% on Friday, while the S&P 500 declined 0.25% and the Nasdaq Composite lost 0.52%. Despite Friday's weakness, all three major indexes ended the week with gains.