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* GM restores quarterly dividend after greater than two years

* Deere shares slip after earnings miss

* 10-year U.S. Treasury yield nears 3%

* Indexes down: Dow 0.68%, S&P 1.16%, Nasdaq 1.91% (Provides remark, particulars; updates costs)

By Bansari Mayur Kamdar and Devik Jain

Aug 19 (Reuters) – The S&P 500 and the Nasdaq on Friday have been set for his or her first weekly loss after 4 weeks of positive factors as worries over rate of interest hikes sapped threat urge for food and dragged the megacap development and know-how shares sharply decrease.

The blue-chip Dow was set to publish slim weekly positive factors, with shares struggling to advance this week as preliminary hope that the inflation had peaked gave option to doubts following the Federal Reserve’s minutes from July assembly.

The market expectation of a much less aggressive price hike was dampened because the minutes didn’t present a transparent trace on the tempo of price will increase and confirmed policymakers dedicated to elevating charges.

“Right now was the day that the bullish buyers simply did not have the muscle to maintain pushing the sport greater and that occurs in some unspecified time in the future – optimism fades and the bears get a chunk on the apple,” mentioned Mike Zigmont, head of buying and selling & analysis at Harvest Volatility Administration.

Excessive-growth and know-how shares corresponding to Amazon.com Inc and Alphabet Inc fell over 2% as U.S. Treasury bond yields rose, mimicking European bonds as Germany posted record-high improve in month-to-month producer costs.

The benchmark 10-year U.S. Treasury yield climbed to close a one-month excessive at 2.978%.

Banks fell 2.3% and have been set to finish the week decrease, probably snapping their six-week successful streak.

“Lot of particular person not so nice information right here at the moment and it is simply manifesting in an general market selloff,” mentioned Dennis Dick, retail dealer at Triple D Buying and selling, pointing to revenue miss by Deere & Co, inflation in Germany and a selloff in meme shares and cryptocurrencies.

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At 12:26 p.m. ET, the Dow Jones Industrial Common was down 231.33 factors, or 0.68%, at 33,767.71, the S&P 500 was down 49.57 factors, or 1.16%, at 4,234.17, and the Nasdaq Composite was down 247.57 factors, or 1.91%, at 12,717.78.

In the meantime, Richmond Federal Reserve President Thomas Barkin mentioned on Friday the Fed’s efforts to regulate inflation may result in a recession, nevertheless it needn’t be “calamitous”.

St. Louis Fed President James Bullard mentioned on Thursday he was in favor of a 3rd straight 75 basis-point price hike in September, whereas his San Francisco Fed colleague Mary Daly mentioned a 50 or 75 foundation level hike subsequent month could be “cheap”.

The Fed has raised its benchmark in a single day rate of interest by 225 bps since March to struggle 4 decade-high inflation.

Focus subsequent week might be on Fed Chair Jerome Powell’s speech on the financial outlook on the annual world central bankers’ convention in Jackson Gap, Wyoming.

Friday’s month-to-month choices expiration also needs to make manner for higher near-term inventory market strikes, as plenty of choices supplier positions, which can have been appearing to suppress index volatility, expires, analysts mentioned.

Cryptocurrency and blockchain-related shares dropped following a sudden selloff in bitcoin, with crypto trade Coinbase International and miner Marathon Digital down 9.6% and 14.1%, respectively.

Meme inventory Mattress Bathtub & Past Inc plunged 35.2% as billionaire investor Ryan Cohen exited the struggling residence items retailer by promoting his stake.

Normal Motors Co rose 2.1% after it mentioned it could reinstate quarterly dividend payouts.

Declining points outnumbered advancers for a 6.85-to-1 ratio on the NYSE and a 4.45-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week highs and 29 new lows, whereas the Nasdaq recorded 26 new highs and 75 new lows.

(Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru, Saqib Ahmed in New York; Enhancing by Shounak Dasgupta and Arun Koyyur)