Dow tumbles 640 points as stocks record worst day in 2 months

U.S. stocks finished sharply lower on Monday after their worst session in two months as investors braced for a more hawkish Federal Reserve. The S&P 500
SPX,
-2.14%
slumped 90.49 points, or 2.1%, to 4,137.99. The Dow Jones Industrial Average
DJIA,
-1.91%
fell 643.13 points, or 1.9%, to 33,063.61. The Nasdaq Composite
COMP,
-2.55%
dropped 323.64 points, or 2.6%, to 12,381.57. Market strategists blamed the weakness in stocks on expectations for more aggressive interest-rate hikes ahead of Fed Chairman Jerome Powell’s speech on Friday when he will share an update on the central bank’s views from the annual economic symposium in Jackson Hole, Wyo. Analysts also blamed rising borrowing costs for the weakness in stocks, as the 10-year Treasury yield topped 3%
TMUBMUSD10Y,
3.032%
for the first time in a month.