CNBC – UPDATED TUE, DEC 6 20225:22 PM EST
Stocks tumbled Tuesday, building on the previous session’s losses, as fears of a recession gripped Wall Street.
The S&P 500 shed 1.44% to close at 3,941.26, while the Nasdaq Composite sank 2% to finish at 11,014.89. The Dow Jones Industrial Average dropped 350.76 points, or 1.03%, to settle at 33,596.34.
Stocks added to Monday’s declines, with the S&P falling for a fourth straight day and its seventh negative session in eight. Tuesday’s moves bring the Dow’s two-day losses to more than 830 points.
Media and bank stocks, which tend to suffer during recessions, led the losses. Paramount Global’s CEO warned of lower fourth-quarter advertising revenue, sending shares down nearly 7%. Morgan Stanley’s stock slumped amid news it’s planning to cut 2% of its workforce, continuing the recent layoff trend in the sector. Growth-focused technology names like Nvidia, Amazon and Meta Platforms also weighed on the market.
“Fundamentally, we are seeing another round of major layoffs this week and that only increases the odds that we have a hard landing in 2023 and enter a deeper recession than was initially expected,” said Adam Sarhan, CEO of 50 Park Investments.
JPMorgan Chase’s CEO Jamie Dimon echoed concerns of a downturn ahead, saying during an interview on CNBC’s “Squawk Box” Tuesday that inflation would push the economy into a recession.
Inflation and its impact on the consumer “may very well derail the economy and cause a mild or hard recession that people worry about,” he said.
With Tuesday’s losses, the S&P is already down 3.2% this week and the Nasdaq is off by 3.9%.
Markets are largely expecting the Federal Reserve to slow its hiking pace to a half-percentage-point increase when it meets next week. But investors fear a step down in its clip won’t be enough to stop the economy from entering a recession in 2023.
Source: https://www.cnbc.com/2022/12/05/stock-market-futures-open-to-close-news.html
Komentar Terbaru