That’s a solid move down and we’ve had a handful of days like this. Wages reported a solid move up and that is seen as an indicator that the Federal Reserve will move to raise rates more aggressively than expected in 2018.
The Dow Jones industrial average dropped 400 points, with Exxon Mobil sliding 5.4 percent. The S&P 500 fell 1.2 percent, with energy as the worst-performing sector. The Nasdaq composite declined 1.1 percent as a decline in Apple and Alphabet offset a strong gain in Amazon shares.
“The key for the market today is rising interest rates,” said Mike Baele, managing director at U.S. Bank Wealth Management. “The old adage is: ‘Bull markets don’t die of old age, they are killed by higher interest rates.’ That looms large.”