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Stock Market Today: Stocks Swing Lower as Inflation Fears Rise

The article from Kiplinger discusses the recent fluctuations in the U.S. stock market, driven by concerns over persistent inflation. On a specific day, major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq all experienced declines, with the Dow dropping 336 points or 1%, the S&P 500 falling 1.1%, and Nasdaq decreasing by 1.6%. This downturn was triggered by a report from the Institute for Supply Management (ISM) indicating that the U.S. services sector PMI rose to 54.5 in August, signaling continued economic expansion but also raising fears of sustained high inflation. Investors are particularly worried because this could lead the Federal Reserve to maintain or even increase interest rates to combat inflation, potentially slowing down economic growth. Additionally, the article mentions that despite these concerns, some sectors like energy saw gains due to rising oil prices, while tech stocks were hit harder due to their sensitivity to interest rate changes. The market's reaction reflects broader anxieties about the Fed's next moves in monetary policy and the ongoing battle against inflation.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/stocks/stock-market-today-stocks-swing-lower-as-inflation-fears-rise ]