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Dow Jones drops 68 points in third straight losing day

The Dow Jones Industrial Average dropped 68.93 points Wednesday as it fell for the third consecutive day. File Photo by John Angelillo/UPI
The Dow Jones Industrial Average dropped 68.93 points Wednesday as it fell for the third consecutive day. File Photo by John Angelillo/UPI | License Photo

Sept. 8 (UPI) -- The Dow Jones Industrial Average fell for the third consecutive day Wednesday amid ongoing concerns about the impact of the COVID-19 pandemic on the economy.

The blue-chip index dropped 68.93 points, or 0.2%, following a 260-point drop Tuesday and a 74-point decline Friday following a disappointing August jobs report. Markets were closed on Monday for Labor Day.

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Other major markets also declined Wednesday, with the S&P 500 sliding 0.13% and the Nasdaq Composite dropping 0.57%.

Nancy Tengler, chief investment officer at Laffer Tengler Investments, told CNN Wednesday that markets are "getting close to a correction that may be meaningful" estimating a dip of about 10% to 15%.

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"We've pretty much been rocket to the moon since March 2020," Tengler said. "I think it would be good, it would recalibrate."

The Dow has fallen 1% so far for the month of September, while the S&P 500 has dropped 0.4% and the Nasdaq has traded about flat.

Investors are particularly concerned about volatility in September, which has historically been one of the weaker trading months of the year.

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"We see a bumpy September-October as the final stages of a mid-cycle transition play out," Morgan Stanley chief cross-asset strategist Andrew Sheets said in a note. "The next two months carry an outsized risk to growth, policy and the legislative agenda."

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The Labor Department on Wednesday reported that job openings rose to a record of nearly 11 million in July as job openings outnumbered the unemployed by more than 2 million.

In its "Beige Book" report the Federal Reserve said U.S. businesses are experiencing rising inflation, exacerbated by a shortage of goods and that overall growth had "downshifted slightly to a moderate pace" due to increased health concerns surrounding the Delta variant surge.

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"The deceleration in economic activity was largely attributable to a pullback in dining out, travel and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant, and, in a few cases, international travel restrictions," the report stated.

Markets are also closely watching the Fed for the possibility it might pull back its coronavirus monetary stimulus.

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