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Wall Street may fall after the release of the PMI index

(Reuters) – The New York Stock Exchange fell on Tuesday as investors focused on August PMI data, which showed another slowdown in the economy.

The Dow Jones index fell -0.47%, or 154.02 points, to 32,909.59 points.

The broader S&P-500 fell 9.26 points, or -0.22%, to 4,128.73 points.

The Nasdaq Composite fell by 0.27 points (0.00%) to 12,381.30 points.

Employment fell this month to the lowest level in 18 months, with the PMI reading at 45.0 from 47.7 in July, amid weak demand and monetary strength against historic inflation.

Investors remain cautious ahead of Friday’s speech by US Federal Reserve (Fed) President Jerome Powell at the annual meeting in Jackson Hole.

Traders are divided whether to raise the Fed rates by 50 points or 75 points in September, after several officials expressed the commitment of the Fed to fight inflation.

“The market seems to have realized that the Fed may raise interest rates another 75 basis points in September,” said Jake Dollarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma.

“The market fears that Powell will return to a ‘hawkish’ position.”

The yield on ten-year Treasuries has reached its highest level since late July.

In stocks, Zoom Video Communications fell after it lowered its full-year profit and revenue guidance amid weak demand and increased competition.

Macy’s rose after posting quarterly results that beat market expectations.

Palo Alto Networks jumped after publishing its quarterly results, which beat expectations, and announcing a three-quarter dividend.

(Contributed by Devik Jain; French version by Camille Raynaud)

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