Markets Right Now: Stocks drop on shifting odds for rate cut

NEW YORK (AP) — The latest on developments in financial markets (all times local):

12:00 p.m.

Stocks are falling Monday as investors try to gauge the Federal Reserve’s next move on interest rates.

A strong U.S. jobs report Friday dimmed investors’ expectations that the Fed would cut its benchmark interest rate by as much as half a percentage point later this month. Many investors still expect a quarter-point cut.

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Shares of health care and technology companies fell the most around midday. Apple dropped 2.1% and Pfizer slipped 1.8%.

Deutsche Bank shares traded in the U.S. dropped 5.7% after the German bank announced a massive restructuring.

The S&P 500 fell 16 points, or 0.5%, to 2,974.

The Dow Jones industrials lost 135 points, or 0.5%, to 26,786. The Nasdaq fell 75 points, or 0.9%, to 8,086.

The Russell 2000 index of smaller companies declined 0.7% to 1,564.

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9:35 a.m.

Stocks are falling Monday as investors try to gauge the Federal Reserve’s next move on interest rates.

A strong U.S. jobs report Friday dimmed investors’ expectations that the Fed would cut its benchmark interest rate, possibly by as much as half a percentage point, at a meeting later this month.

Shares of banks and technology stocks fell the most shortly after the open.

Deutsche Bank shares traded in the U.S. dropped 6.3% after the German bank announced a massive restructuring.

The S&P 500 fell 15 points, or 0.5%, to 2,974.

The Dow Jones Industrial Average lost 150 points, or 0.6%, to 26,771. The Nasdaq fell 60 points, or 0.7%, to 8,101.

Bond prices rose. The yield on the 10-year Treasury slipped to 2.02%.

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