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

U.S. Stocks Sink as Recession Fears Return After Holiday Break

Stock Markets Jul 05, 2022 09:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks are sinking on Tuesday after the long holiday weekend as investors renewed their fears about a looming recession.

At 10:29 AM ET the Dow Jones Industrial Average was down 631 points, or 2%, while the S&P 500 was down 1.8% and the NASDAQ Composite was down 1%.

This is a big week for economic data, including the monthly nonfarm employment report from the government on Friday. Before that comes out, investors will get to assess the minutes of the Federal Reserve’s most recent policy meeting and parse any hints of what actions are to come as the central bank tries to tame inflation.

Analysts have been sending mixed signals about the outlook. On Tuesday, Credit Suisse cut its S&P 500 forecast for the year to 4,300 from 4,900 though said a recession will likely be avoided. The S&P is trading around 3,756 currently.

The pessimism is weighing on sectors that normally benefit from economic growth, such as banking and travel. The KBW Bank ETF, which includes many of the biggest U.S. banks, was down 2.8%, while the U.S. Global Jets ETF (NYSE:JETS) was down 3.2%. Cruise line Carnival Corporation (NYSE:CCL) was down 4.5%, while Walmart Inc (NYSE:WMT) dipped 0.5%.

Shares of department store Kohl's Corp (NYSE:KSS) lost another 3.7% on Tuesday after falling 20% on Friday, when it said it ended deal talks.

Tesla Inc (NASDAQ:TSLA) shares lost 3.7% after reporting it delivered more than 254,000 vehicles in the second quarter, a decline of more than 17% from the first quarter.

Oil sold off sharply. Crude Oil WTI Futures was down 5%, to around $103 a barrel and Brent Oil Futures was down 5.6% to $107 a barrel. Gold Futures fell 0.6%, to $1,791.

Also worth noting, the euro fell to the lowest level against the dollar in two decades, to around $1.0281.

U.S. Stocks Sink as Recession Fears Return After Holiday Break
 

Related Articles

Coca-Cola bottler to detail costs of exiting Russia
Coca-Cola bottler to detail costs of exiting Russia By Reuters - Aug 10, 2022

By Jessica DiNapoli NEW YORK (Reuters) - Coca-Cola Co 's bottler Coca Cola HBC AG (LON:CCH) will on Thursday detail the cost of stopping production and sales of Coke in Russia, a...

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 (16)
Yew Heng Goh
Yew Heng Goh Jul 06, 2022 8:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Medicines for inflation
Yew Heng Goh
Yew Heng Goh Jul 06, 2022 8:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Medicines for inflation
Yew Heng Goh
Yew Heng Goh Jul 06, 2022 8:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Medicines for inflation
Yew Heng Goh
Yew Heng Goh Jul 06, 2022 8:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Medicines for inflation
Kerry Ditto
Kerry Ditto Jul 05, 2022 12:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
At the rate of oil price falling today, in two weeks, oil price would be zero.
Kerry Ditto
Kerry Ditto Jul 05, 2022 11:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
PCE price has been falling for 3 months in a row. Oil price is falling below 100 quick. Inflation is gone but deflation is the major concern. What would be Fed's excuse for any further rate hike. They have no choice but to cut the ratte now. Fed has no credibility. Fed migh have be abolished and replaced by a computer program.
Kerry Ditto
Kerry Ditto Jul 05, 2022 11:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US Core PCE P. Index YoY: Feb = 5.31%; Mar = 5.22%; Apr= 4.92%; May= 4.69%Falling for 3 months in a row. This is deflation, not inflation. They have to look at the rate of change.
Kerry Ditto
Kerry Ditto Jul 05, 2022 11:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The way oil price price falling today indicate we have deflation concern, not inflation concern.
Kerry Ditto
Kerry Ditto Jul 05, 2022 11:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Any further rate hiking should be a violation of Fed's mandate of maximum employment.
Ro Br
Ro Br Jul 05, 2022 11:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
True, just le inflation go rampant, so smart
Kerry Ditto
Kerry Ditto Jul 05, 2022 11:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed's cutting the interest rate is no brainer. Only question is how low it would cut and how quickly they will cut.
Ro Br
Ro Br Jul 05, 2022 11:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
While maintaining the little credibility they have?
Kerry Ditto
Kerry Ditto Jul 05, 2022 11:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed now has to cut the interest rate just to weaken USD. Otherwise, US economy falls to recession.
 
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