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Stock Market Today: Dow in Worst Quarterly Loss Since 2020 on Recession Fears

Stock Markets Jun 30, 2022 04:22PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow on Thursday wrapped up the second quarter of the year with its biggest quarterly loss in two years as the latest economic data flagging a wobble in the consumer exacerbated fears of a recession at a time when the Federal Reserve is hellbent on bringing inflation down.   

The Dow Jones Industrial Average slipped 0.80%, or 249 points, suffering its worst quarter since Q1 2020. The Nasdaq was down 1.3%. The S&P 500 fell 0.8% posting its biggest first-half loss since 1970. 

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. Micron (NASDAQ:MU) reported mixed quarterly results as revenue fell short of Wall Street estimates, while guidance was also softer than expected.  

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.

Stock Market Today: Dow in Worst Quarterly Loss Since 2020 on Recession Fears
 

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Comments (12)
pcqsn smwop
pcqsn smwop Jun 30, 2022 7:26PM ET
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Anything new?
Nick Johnson
Nick Johnson Jun 30, 2022 7:11PM ET
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It is not "recession fears", we have been in a recession for almost 6 months now and it is a question of how far down this turkey will go.
Jack Nicholson
Jack Nicholson Jun 30, 2022 7:11PM ET
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truth
Robert smith
Robert smith Jun 30, 2022 6:51PM ET
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One other thought for energy traders. Right now oil stocks are a classic example of stocks going where they CANT. the 8% dividends (some as high as 19%) makes them LOOK like no brainers with oil still at TOP and refusing to go down. But they WILL take them down against the longs, and ONLY when they cant get anyone to dump, THEN they'll crash oil. There IS no Russian based shortage. Russian is likely pumping and selling more than every before they are just passing it thru India and China, its all a hoax. You cant stop oil from reaching markets anymore than you can stop drugs. Just LOOK at how little 20 years of sanctions hurt IRAN. So market my words when they get everybody long on oil stocks and they won't sell, THEN oil crashes, because high oil and high interest rates will have already crashed economies.
Nenad Lutovac
Nenad Lutovac Jun 30, 2022 6:47PM ET
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All defence industry was up...
Robert smith
Robert smith Jun 30, 2022 6:36PM ET
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I would think twice before trying to buy every 1000 points lower thinking that the PE's make everything a bargain. or that dividends make a stock a steal. The whole earnings picture will end up matching the prices when we finally hit bottom. Going up I kept trying to tell people shorting the market that high PE's didnt make a stock or the market a short, not when they were all paying NOTHING for operating cash. Markets ALWAYS run up until even the shorts become buyers just in time for the crash and the downside is always the same. When the people trying to "buy the dip" finally end up being short then its time to buy. FYI the LAST time I saw this happen was in 2001 when the market lost a whopping 84% of its value. Any idea where that would put us today? At around 2200 nasdaq. up or down, the market always SEEMS to go where it just CANT. But the truth is big boys won't buy again until EVERYONE has dumped everything and started shorting. Just like BTC, once they all took it seriously...
Jeffrey Murray
Jeffrey Murray Jun 30, 2022 6:14PM ET
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Markets thrive on divided government
jason xx
jason xx Jun 30, 2022 5:48PM ET
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Market is afraid of its own shadow and is way worse off then the actual economy.
TheEnd IsNigh
TheEnd IsNigh Jun 30, 2022 4:45PM ET
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Recession fears? You guys frame that headline like there is an alternative. How about: "Dow in Worst Quarterly Loss Since 2020 in Bid to Avoid USD Collapse"? Recession is all but a guarantee. It has to happen because the alternative is worse.
Jun 30, 2022 4:44PM ET
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Time to buy gold and gold miner stocks
Mitchel Pioneer
Mitchel Pioneer Jun 30, 2022 4:37PM ET
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Another flagrant show of fraud and criminal manipulation, as yet another loss is halved by the close.  Can't wait to see what the Friday FRAUD brings, as savvy "investors" load up to end the week, and Wall Street once again plunges a financial knife in the back of America before the weekend.  Watch in awe as today's mitigated loss magically vanishes into thin air.
Jack Nicholson
Jack Nicholson Jun 30, 2022 4:37PM ET
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don't you have anything positive to say? Me neither, except for my puts look glorious!
 
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