Wall Street slides as investors worry about US economic downturn

  • The S&P 500 is back near two-year lows
  • Airlines and cruises canceled due to Hurricane Ian
  • Carmax drops after missing Q2 forecast
  • Indices: Dow -2.17%, S&P 500 -2.72%, Nasdaq -3.62%

(Reuters) – Wall Street tumbled on Thursday amid concerns that the Federal Reserve’s fierce battle against inflation could derail the US economy, and investors feared a defeat in global currency and debt markets.

With heavy Tesla related technology (TSLA.O)apple (AAPL.O) and nvidia (NVDA.O) Nasdaq fell 5% or more (nineteenth) It was near its lowest closing level in 2022, set in mid-June.

S&P 500 . Index (.SPX) It was on track for its lowest closing level since November 2020. It lost 8% in September.

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Selling in US Treasuries resumed as Federal Reserve officials gave no indication that the US central bank would adjust or alter its plans to aggressively raise interest rates to cut high inflation.

Loretta Meester, president of the Federal Reserve Bank of Cleveland, said she does not see distress in US financial markets that would alter the central bank’s drive to reduce inflation by raising interest rates that kept the fed funds rate between 3.0% and 3.25%. Read more

Data showed that the number of Americans filing new claims for unemployment benefits fell to a five-month low last week as the labor market remains resilient despite aggressive interest rate increases by the Federal Reserve.

“The good news is bad news in that today’s jobs number once again confirms that the Fed has a long way to go,” said Phil Blancato, president of Ladenberg Tallman Asset Management in New York. “The fear in the market is that the Fed is going to push us into a very deep recession, which will stagnate profits, which is why the market is selling.”

Standard & Poor’s 500 loses $9 trillion in 2022, defeating the market

The yields of many Treasuries, which are nearly risk-free if held to maturity, now dwarf the S&P 500 dividend yield, which recently stood at about 1.8%, according to Refinitiv Datastream. Read more

In the afternoon, the Dow Jones Industrial Average (.DJI) It fell 2.17% at 29,041.04 points, while the Standard & Poor’s 500 . fell (.SPX) It lost 2.72% to 3617.89.

Nasdaq Composite (nineteenth) It fell 3.62% to 10,651.56.

All 11 sector indices of the S&P 500 fell, with consumer appreciation (.SPLRCD) It fell 4% as auto stocks fell.

CarMax Company (KMX.N) It fell more than 20% after the used-car retailer missed expectations for its second-quarter results, weighed down by consumers cutting spending amid inflation, higher interest rates and higher auto prices.

General Motors Corporation (GM.N) The Ford Motor Company (FN) It also took a hit, each down over 6%.

Airlines and cruise operators fell into canceled or delayed flights after Hurricane Ian hit Florida’s Gulf Coast with catastrophic force. Read more

American Airlines (AAL.O)United Airlines Holdings, (UAL.O) and Delta Airlines (DAL.N) Each fell more than 4%.

Cruise ship companies Norwegian Cruise Line Holdings Ltd (NCLH.N) And Carnival Company (CCL.N) It fell 6.4% and 7.8%, respectively.

Low issues outnumbered advanced issues on the New York Stock Exchange by 7.64 to 1; On the Nasdaq, the ratio was 4.12 to 1 in favor of declining stocks.

S&P 500 makes no new 52-week highs and 100 new lows; The Nasdaq Composite recorded six new highs and 447 new lows.

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Additional reporting by Susan Mathew, Ankika Biswas and Shreyachi Sanyal in Bengaluru; Additional reporting by Medha Singh. Editing by Anil de Silva, Aaron Coeur and Jonathan Otis

Our criteria: Thomson Reuters Trust Principles.

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