U.S. stocks are having the worst session since 2022 after a string of weak economic reports jolted investor fears that a recession may be brewing.
All three of the major benchmarks are down well over 2% with the Dow Jones Industrial Average off over 900 points and all of the largest 11 S&P sectors in the red.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 39533.4 | -814.57 | -2.02% |
| SP500 | S&P 500 | 5328.21 | -118.47 | -2.18% |
| I:COMP | NASDAQ COMPOSITE INDEX | 16747.973289 | -446.17 | -2.59% |
The tech-heavy Nasdaq Composite is nearing a correction, down 10% from its peak.
A paltry employment report which saw just 114,000 jobs created last month and an uptick in unemployment to 4.3% added fuel to the fire on Friday. This after weekly jobless claims jumped more than expected to an 11-month high on Thursday, which was followed by Intel’s announcement that it plans to cut 15% of its workforce and pause its dividend.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLY | CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF | 175.35 | -7.58 | -4.14% |
| AMZN | AMAZON.COM INC. | 167.15 | -16.92 | -9.19% |
| WMT | WALMART INC. | 68.03 | -1.75 | -2.52% |
| TGT | TARGET CORP. | 147.02 | -3.39 | -2.25% |
Consumer discretionary stocks were down over 4% with declines in Walmart and Target as well as Amazon, which told investors that shoppers were turning more cautious in its latest earnings report.
Additionally, the ISM Manufacturing report fell below 50, a sign of contracting, and the sector posted another month of job cuts in July.
MANUFACTURERS TALKS 2024 ELECTION AND WHAT THEY NEED
Federal Reserve Chairman Jerome Powell, at this week’s meeting, signaled that a rate cut is likely with about 80% of market participants expecting a larger easing, which would bring rates from 550-525 to 475-500, according to the CME’s FedWatch Tool, which tracks future rate moves.
THE US HOUSING MARKET IS ‘STUCK’ AND MIGHT REMAIN THAT WAY UNTIL 2026
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GLD | SPDR GOLD SHARES TRUST – EUR ACC | 225.22 | -0.58 | -0.26% |
Gold, a traditional flight to safety, was also under pressure. However, it is hovering near its record $2,470 an ounce.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Read the full article here
