By Liz Moyer
Investing.com -- U.S. stocks ended in the red on Monday, killing a rally after a report Apple would slow hiring.
The markets had been higher earlier as big banks kicked off another busy week of earnings and expectations eased about a big interest rate increase by the Fed.
Goldman Sachs Group Inc (NYSE:GS) beat expectations, its stock was up 2.5% after bond trading helped overcome weakness in M&A advisory. Bank of America Corp (NYSE:BAC) ended flat after its report also showed a slump in investment banking activity. Both had been up higher in earlier trading.
Apple shares (NASDAQ:AAPL) fell 2% after a report it would slow hiring and spending, becoming the latest tech giant to make such a move as fears of an economic downturn hit the sector.
High inflation stoked fears the Fed could jack up rates an uncharacteristically aggressive 1%, but now investors are expecting a 0.75 percentage point increase to match the move in June. That would still be one of the biggest moves since the 1990s.
Officials are trying to tame inflation, helped in recent weeks by a drop in gasoline prices, but still not enough for comfort. Food prices remain elevated as well, and a prolonged heat wave in much of the country means air conditioning bills will eat into household budgets this month.