US equities ticked lower on Tuesday after a drop in the previous day, when traders took hotter than expected US services data as a signal for further interest rate rises from the Federal Reserve.
The S&P 500 index slipped 0.3 per cent in early trading, with the Nasdaq Composite down 0.4 per cent. Both benchmarks on Monday endured their largest daily declines since early November following a report from the Institute for Supply Management showing that its index, which tracks economic activity in the services sector, expanded for the 30th month in a row in November, rising to 56.5 from 54.4 in October.
The unexpectedly strong figure was interpreted by investors as a sign that the Fed may yet have to keep the world’s most important interest rate higher for longer in an attempt to cool the US economy. A cycle of rate rises has increased the federal funds rate to a target range of 3.75 per cent to 4 per cent from zero at the start…
