US close: Stocks finish weaker after long weekend

dl nyse new york stock exchange wall st street city finance dow jones nasdaq sp finance dollar dollars us usa united states of america — New York Stock ExchangeSharecast photo / Josh White

Wall Street stocks closed weaker on Tuesday, as traders returned from the Labor Day long weekend to rising bond yields and fears the Federal Reserve's attempts to aggressively tighten monetary policy could put more pressure on the economy.

At the close, the Dow Jones Industrial Average was down 0.55% at 31,145.30, as the S&P 500 lost 0.41% to 3,908.19, and the Nasdaq Composite was off 0.74% at 11,544.91.

The Dow closed 173.14 points lower on Tuesday, extending losses recorded ahead of the three-day breather.

The holiday-shortened week's primary focus was set to be a number of speeches from central bank heads, and an interest rate decision by the European Central Bank later in the week.

As far as Tuesday was concerned, US Treasury yields moved higher by the end of the day, with the yield on the benchmark 10-year note rising to 3.344%, while its two-year counterpart was at 3.501%.

On the macro front, a final reading of S&P Global's August manufacturing purchasing managers’ index (PMI) was revised higher to 51.5, up from a preliminary reading of 51.3 but still pointing to the slowest factory growth since July 2020

Elsewhere, the Institute for Supply Management's non-manufacturing PMI unexpectedly rose to 56.9 in August, up from 56.7 in July, beating economists' expectations for a print of 55.1 and pointing to the strongest growth in services activity in four months.

In the corporate space, CVS Health closed down 0.71% after it announced the acquisition of Signify Health overnight, as part of a deal valued at around $8bn.

Bed Bath & Beyond tumbled 18.42% after traders digested news of store closures and layoffs at the troubled retailer.

On the upside, security giant ADT jumped 16.37% after securing $1.65bn in fresh investment from Google parent Alphabet and insurance group State Farm.

Reporting by Josh White at Sharecast.com.

Dow Jones - Risers

Visa Inc. (V) $198.68 0.44%
Boeing Co. (BA) $152.39 0.38%
Johnson & Johnson (JNJ) $162.91 0.27%
Unitedhealth Group Inc. (UNH) $517.68 0.26%
Merck & Co. Inc. (MRK) $86.40 0.22%
Walgreens Boots Alliance, Inc. (WBA) $35.32 0.14%
Coca-Cola Co. (KO) $61.10 0.05%
JP Morgan Chase & Co. (JPM) $113.57 0.03%
Dowdupont Inc. (DWDP) $0.00 0.00%
Honeywell International Inc. (HON) $0.00 0.00%