US Stocks Down, Investors Squeezed by Concern!

<p>&nbsp;All three Wall Street indexes closed in the red on Wednesday following rising expectations that interest rates will remain high for longer.</p><p><br /></p><p>This follows data published in the New York session, showing the non-manufacturing PMI data of the US ISM survey rose to the highest level since February last month.</p><p><br /></p><p>Analysts see the figures as showing that the US economy remains stronger than other G10 countries and has less risk of entering recession.</p><p><br /></p><p>As a result, the market increased expectations that the Federal Reserve (Fed) interest rate will remain at the highest level for a longer period.</p><p><br /></p><p>In addition, investors are also worried about rising oil prices, as higher energy costs may lead to inflation rising again thus forcing the Fed to raise interest rates again.</p><p><br /></p><p><br /></p><p>Following that expectation, the 10-year US treasury yield rose to a two-week high of 4.30% further weakening the stock market.</p><p><br /></p><p>The Dow Jones Industrial Average fell 0.57% to 34,443.19, while the S&amp;P 500 lost 0.70% to 4,465.48 and the Nasdaq Composite fell 1.06% to 13,872.47.</p><p><br /></p><p>Apple came under pressure following reports that China had banned government employees from using iPhones, saw it drop 3.5%.</p><p><br /></p><p>Meanwhile, Nvidia, down 3.2%, has also contributed to a strong pullback in the Nasdaq index.</p>