Why is the Rio Tinto share price having such a lousy start to the week?

The Rio Tinto Limited (ASX: RIO) share price is off to a disappointing start to the week.

This comes despite the company not releasing any new announcements to the ASX.

At the time of writing, the mining giant’s shares are slipping 2.25% to $96.44.

What’s dragging Rio Tinto shares lower?

There are a couple of reasons why the Rio Tinto share price is trading in negative territory today.

First and foremost, investors are heading for the hills following a strong sell-off on Wall Street late last week.

The market had kept a close watch at the United States Federal Reserve’s annual Jackson Hole economic symposium on Friday.

However, at the event, the central bank’s chair Jerome Powell made hawkish comments about keeping inflation under control. He reiterated the goal to bring down inflation levels to 2% compared to the 8.5% recorded last month.

This means that a 0.75% rate hike could be on the cards for September. And the market appears to be pricing this in.

In addition, the release of Fortescue Metals Group Limited (ASX: FMG)’s results seems to have dampened sentiment for Rio Tinto.

While the iron ore miner recorded an outstanding operational performance, key financial metrics fell by double digits.

Currently, Fortescue shares are down 4.4% to $19.

And lastly, iron ore futures are falling 4.4% to US$101.15 per tonne amid a downbeat outlook on the steel-making ingredient.

Rio Tinto share price summary

Since the beginning of the year, the Rio Tinto share price has moved in circles to register a loss of 3.68%.

For the moment, its shares are in a sideways channel around the psychological $100 mark.

Based on today’s price, Rio Tinto presides a market capitalisation of approximately $36.6 billion.

The post Why is the Rio Tinto share price having such a lousy start to the week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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