By Jessica Menton -
U.S. stocks extended losses Tuesday, a day after the Dow Jones Industrial Average plunged 300 points as investors weighed a looming government shutdown and uncertainties surrounding the health of the global economy. Market professionals look ahead to more speeches from top Federal Reserve officials this week, which could provide more clues as to the timing of the central bank’s inevitable rate hike.
The Dow Jones Industrial Average (INDEXDJX:.DJI) lost 23 points, or 0.14 percent, to 15,979. The Standard & Poor's 500 index (INDEXSP:.INX) fell 4.15 points, or 0.22 percent, to 1,877. The Nasdaq composite (INDEXNASDAQ:.IXIC) lost 21 points, or 0.5 percent, to 4,522.
Market professionals are looking ahead to a speech by Janet Yellen Wednesday at the St. Louis Fed community banking conference after the fed chair said last week she expects the central bank to lift rates some time this year.
William Dudley, president and CEO of the Federal Reserve Bank of New York, echoed Yellen’s sentiments Monday and agreed the central bank will likely hike rates later this year. However, Charles Evans, president and CEO of the Federal Reserve Bank of Chicago, said the Fed should delay a liftoff until next year.
Data released Tuesday revealed U.S. home prices rose 5 percent in July, the S&P/Case-Shiller's 20-City Index showed. The report come in nearly in line with Wall Street estimates for an increase of 5.1 percent.
An interest rate increase by the Federal Reserve, now expected in December by many analysts, is not likely to derail the strong housing performance, says David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.
“Prices of existing homes and housing overall are seeing strong growth and contributing to recent solid growth for the economy,” Blitzer said in the report.
Global shares traded mixed Monday after a sell-off in commodities overnight, with China’s benchmark Shanghai Composite index closing down 4 percent while Japan’s Nikkei index lost nearly 3 percent.
European stocks traded flat, with Germany's DAX down 0.02 percent while France's CAC edged up 0.03 percent, respectively.
West Texas Intermediate crude, the benchmark for U.S. oil prices, rose nearly 2 percent to $45.25 per barrel for November delivery on the New York Mercantile Exchange. On the London ICE Futures Exchange, Brent crude, the global benchmark for oil prices, added 1.9 percent to $48.22 a barrel.