Dow Jones drops 154 points Tuesday as Wall Street marks time

NEW YORK, New York – Weak economic data and skittishness about the Fed’s next moves kept investors on edge on Tuesday.

Private-sector business activity in the United States fell for the second month in a row in August.

“What we have seen in the past week is the realization that the Fed could still raise interest rates by 75 basis points in September,” Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma, told Reuters Tuesday. “The market fears that Powell’s going to go back into a hawkish stance.”

The Dow Jones was the biggest mover, shedding 154.02 points or 0.47 percent to 32,909.59.

The Nasdaq Composite was flat, inching down 0.27 of a single point to 12,381.30.

The Standard and Poor’s 500 edged down 9.27 points or 0.22 percent to 4,128.72.

The U.S. dollar underwent a correction in European and U.S. markets Tuesday, following major gains a day earlier. The euro, however, remained below parity, trading at 0.9963 around the New York close Tuesday. The Swiss franc was soft at 0.9644. The Japanese yen edged up to 136.84. The British pound firmed to .1825.

The commodity currencies were all stronger. The Canadian dollar rose to 1.2956. The Australian dollar strengthened to 0.6925. The New Zealand dollar appreciated to 0.6210.

Overseas, the FTSE 100 in London slipped 0.61 percent Tuesday. The Dax in Germany dropped 0.27 percent. The Paris-based CAC 40 was off 0;26 percent.

The Australian All Ordinaries dropped 88.00 points or 1.21 percent to close Tuesday at 7,199.20.

In Japan, the Nikkei 225 tumbled 341.75 points or 1.19 percent to 28,452.75.

New Zealand’s S&P/NZX 50 shed 120.71 points or 1.03 percent to 11,643.21.

In South Korea, the Kospi Composite was down 27.16 points or 1.10 percent at 2,435.34.

China’s Shanghai Composite edged down 1.57 points or or 0.05 percent to 3,276.22.

In Hong Kong, the Hang Seng fell 153.75 points or 0.78 percent to 19,503.25.

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