Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Cuts Some Losses, But Still Set for Biggest H1 Loss in Decades

Stock Markets Jun 30, 2022 04:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Yasin Ebrahim

Investing.com -- The S&P 500 cut some losses Thursday, but remained on course for its worst first-half performance in decades as worries about a recession mount in the wake of Federal Reserve rate hikes to combat surging inflation.

The S&P 500 fell 0.95% on pace for its biggest first-half loss since 1970. The Dow Jones Industrial Average slipped 0.9%, or 287 points and the Nasdaq was down 1.3%.

Energy led the broader market lower under pressure from falling oil prices after OPEC and its allies including Russia, or OPEC+, said they would stick with the previously announced output plan, resisting calls to step up the pace of production.

Following two days of meetings, OPEC+ said they would increase monthly overall production for the month of August to 648,000 barrels per day, unchanged from a prior agreement earlier this month. 

Coterra Energy (NYSE:CTRA), APA (NASDAQ:APA), and Exxon Mobil (NYSE:XOM) were among the biggest decliners falling about 3%

Tech stocks cut some losses, but remained a big drag on the broader market even as Treasury yields slipped after fresh signs that economic growth is slowing.

The 10-year Treasury yield slipped below 3% after data showing consumer spending is less robust than many believe, stoked recession fears and offset a slower than expected rise in inflation.

Consumer spending rose by 0.2% in May, short of forecasts for a 0.4% rise, while April’s figure was revised down to 0.6% growth from 0.9% previously.

As the consumer makes up about 70% of the economy, if they “are not out spending there is little hope the U.S. can avoid a near-term downturn,” Stifel said in a note.

Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META) were down more than 1%. 

Sentiment on Meta was also soured somewhat following a Reuters report Thursday, citing an internal company memo, that the social media company is bracing for slower growth in the second half of the year.

Chip stocks, which led the slide in tech a day earlier, were also on the back foot as investors awaited quarterly results from chipmaker heavyweight Micron (NASDAQ:MU) due after the market closes.

On the earnings front, RH (NYSE:RH) fell more than 10% after the furnisher company cut its full-year outlook, flagging weaker consumer demand that could continue into the second half of the year.

Walgreens Boots Alliance (NASDAQ:WBA), meanwhile, reported quarterly earnings that topped Wall Street estimates, but the drugstore chain kept its guidance unchanged as a slowdown in demand for Covid-19 vaccines is expected to weigh on growth.

In other news, bitcoin slipped below $20,000, triggering a fresh bout of selling across crypto-related stocks, with Coinbase (NASDAQ:COIN), Marathon Digital (NASDAQ:MARA), and Riot Blockchain (NASDAQ:RIOT) nursing heavy losses.

S&P 500 Cuts Some Losses, But Still Set for Biggest H1 Loss in Decades
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Jared Magnums
Jared Magnums Jun 30, 2022 4:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are you sure that’s why oil dropped??I think you just stuck 2 stories together.Here i can do it too.Oil dropped because it rained here today…2 real events but unrelated…
Mitchel Pioneer
Mitchel Pioneer Jun 30, 2022 3:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
With the predictability of the setting sun, the "late trade" fraud commences.  Amazing that there are no sell-off's "in late trade" during a "rally."  Must be a new rule that only "buying" is allowed in the final 30 minutes.  Another circus show by the US Ponzi Scheme.
Jared Magnums
Jared Magnums Jun 30, 2022 3:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They let the Zerohedge crazies out again
ottin nerner
ottin nerner Jun 30, 2022 3:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if this is trend through third quarter, we are doom.... economic meltdown usually happens during the months of September and October.... 1987, 2001, 2007....
Gold Follower
Gold Follower Jun 30, 2022 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What a headline xD
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email