US and European stocks fell for a third straight day on Tuesday, as hawkish rhetoric from last week’s economic conference in Jackson Hole fuelled expectations of higher interest rates.
The broad S&P 500 was down 1 per cent by the late morning in New York, while the technology-heavy Nasdaq Composite slipped 1.2 per cent.
In Europe, the regional Stoxx 600 gauge lost 0.7 per cent, while Germany’s Dax rose 0.5 per cent, trimming earlier losses. London’s FTSE 100 fell 0.9 per cent following a one-day holiday.
Those moves followed two days of weakness in global equities, after central bankers reaffirmed their commitment to tackling inflation at an annual summit in Jackson Hole, Wyoming, even as the prospect of tighter monetary policy threatens to induce a protracted economic slowdown.
In a speech on Friday, Federal Reserve chair Jay Powell said the US central bank “must keep at it until the job is done”, adding that reducing…
