Stocks fell lower Wednesday, as concerns over more potential interest rate hikes from the Federal Reserve weighed on market sentiment. The Dow Jones Industrial Average dropped nearly 200 points, while the S&P 500 and Nasdaq Composite lost 0.7% and 1%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In the spotlight, the U.S. services sector expanded at a faster-than-expected rate in August, according to the Institute for Supply Management's reading on Wednesday. The ISM Services Index reading came in at 54.5% last month, up 1.8 percentage points from July's reading and topping Wall Street expectations. Beneath the headline, the prices component of the index rose 2.1 percentage ports to 58.9% in August, coming in at a four month high.
Following the services report, traders raised the probability that the Fed will increase rates at its November meeting to more than 40%, according to the CME Group's FedWatch tool. Market participants still mostly agree the central bank will maintain its benchmark interest rate between 5.25% to 5.50% later this month, according to CME Group, holding above a 90% probability.
In the afternoon, the release of the Fed's Beige Book on Wednesday showed the U.S. economy saw "modest" growth in July and August as price growth and hirings slowed. The report also revealed that businesses in several districts struggled last month as the cost of making goods grow at a faster pace than prices.
Tech also can under pressure, fueled in part by the European Union naming companies including Amazon
On the earnings front, Zscaler
Elsewhere, Roku
Southwest Airlines
For Thursday, market participants will react to a series of Fedspeak from Philiadeplia, Chicago, New York and Atlanta presidents.