Stock Market Today: Dow Slips, Bed Bath & Beyond Tumbles


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Wall Street had its worst day in months last Friday.

Anges Weiss/AFP via Getty Images

Stocks tumble again on Tuesday as markets continue their recent Federal Reserve-led decline. Investors are worried about interest rates, which are about to hit new highs.

Mid-morning, the

Dow Jones Industrial Average

slipped 357 points, or 1.1%. The


fell by 1.3% and the

Nasdaq Compound

was down 1.4%. All three indices were in the green to start the day.

It’s been a tough few weeks. The S&P 500 comes in on Tuesday down just over 6% from its mid-August high after a summer rally, with weakness prompted by emphatic speech from Fed Chairman Jerome Powell, who put the hope of a Fed pivot to bed once and for all (we hope) as the central bank fights inflation.

The latest central bank murmur came from Minneapolis Fed Chairman Neal Kashkari, who told Bloomberg on Monday he was “pleased” to see how Powell’s Jackson Hole speech was met with a stock market selloff. . Kashkari said it was a sign investors understood how seriously the Fed is committed to getting inflation down to 2%.

While this has brought rates closer to their multi-year highs, they are not above those levels. The 2-year Treasury yield is trading at 3.47%, just around its high for the year. As US rates halted their recent rally, the dollar also stumbled. At 108, the

US dollar index,

also, is just below its multi-decade high, but falling US rates are making the country’s fixed income less attractive.

But the 2-year yield is about to hit a new closing high. That’s not what the stock market wants to see after indices rallied in double-digit percentage terms from June’s 2022 low through mid-August.

“We need to remain healthy skeptical of these rallies until the factors driving the warnings (higher rates, high inflation, slower growth) start to subside,” Sevens Report’s Tom Essaye wrote, referring to the recent Fed warning.

The reality is that “the Fed’s position in Jackson Hole was short but not soft,” wrote Rob Daly, director of fixed income at Glenmede Investment Management. “They’re going to keep raising rates to fight inflation because price pressures haven’t eased.”

The real test of the market this week will be on Friday. That’s when the Bureau of Labor Statistics releases the August jobs report. Economists expect 318,000 jobs to have been created, down from 528,000 in July. A slowdown in the job market could be a good sign for the stock market, as it could mean the Fed can slowly ease off.

“Employment is key to what markets will do this Friday,” wrote Andrew Brenner of NatAlliance Securities.

It’s once again a world where bad news is good.

Here are some stocks in motion on Tuesday:


(ticker: BIDU) fell 7.8% after the Chinese internet giant reported earnings and revenue that beat Wall Street expectations. The group posted a profit of $2.36 per share on revenue of $4.4 billion in the three months to the end of June, significantly beating analysts’ estimates of a profit of $1.54 dollar per share on revenue of $4.3 billion.

Bed bath and beyond

(BBBY) slid 8%, reversing earlier gains, a day before its investor update.


(GPS) gained 2.2% after being upgraded to Equal Weight from Underweight at Barclays.


(PDD) fell 2.6% after being upgraded to Buy from Hold at HSBC.

American outdoor brands

(AUG) The stock rose 17% after being upgraded to Buy from Neutral at B. Riley Securities.


(MMYT) gained 1% after being upgraded to Buy from Neutral at Bank of America.

Write to Jacob Sonenshine at and Jack Denton at


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