Economic Data Sparks Wall Street Slide Amid Inflation and Rate Concerns

Wall Street's major averages closed lower as the Nasdaq experienced a 1% loss due to concerns over sticky inflation and the possibility of higher interest rates. The Institute for Supply Management reported stronger-than-expected services sector data, indicating a strong economy and slower-than-expected inflation. Traders are betting on the Federal Reserve leaving interest rates unchanged after its September meeting. Growth stocks were particularly affected by the prospect of higher rates, and Apple Inc faced additional pressure from a report that China had banned officials from using iPhones for work. The Dow Jones Industrial Average fell 0.57%, the S&P 500 lost 0.70%, and the Nasdaq Composite dropped 1.06%.