Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Stock Market Today: Dow Bears Sharpen Claws as Recession Fever Spikes

Stock Markets Sep 24, 2022 06:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
US500
-0.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.56%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BA
-1.73%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MSFT
-0.18%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FDX
-0.97%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOGL
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Yasin Ebrahim

Investing.com -- The Dow closed sharply lower on the week and briefly fell into bear-market territory Friday as investors fret about the potential of a deeper and darker recession amid growing worries that the Federal Reserve will overshoot on rate hikes.

The Dow Jones Industrial Average fell 1.6%, or 486 points, and fell into bear-market territory intraday as losses exceeded 20% from the January peak. The S&P 500 fell 1.7% to close at its lowest level since June. The Nasdaq slipped 1.8%.

Energy slumped 6%, pressured by a surge in the dollar and worries that a deeper global recession will hurt energy demand.

Marathon Petroleum Corp (NYSE:MPC), Occidental Petroleum Corporation (NYSE:OXY), and Kinder Morgan Inc (NYSE:KMI) were down each down more than 4%.

Fears of a recession have intensified this week after the Federal Reserve chairman Jerome Powell signaled that the central bank would remain on-mission to curb inflation at the expense of economic growth. The Fed pushed its rate hike forecast to 4.4% for 2022, up from 3.4% previously, signaling further jumbo-sized hikes ahead.  

With the Fed hiking rates into a slowing economy in which inflation is still well above trend, Morgan Stanley warned that weakness in economic activity will be more broadly spread. The bank cut its U.S. growth forecast to 0% in 2022 from 0.2% previously and its 2023 forecast to 0.5% from 1.3% previously.

The Dow was also dragged lower by a more than 5% plunge in Boeing (NYSE:BA) after the aerospace company said it had reached a $200 million settlement on charges it misled investors about the 737 Max crashes.

Consumer stocks, which are also acutely vulnerable to slowing economic growth, fell more than 2% as investors priced in softer consumer spending. Amazon (NASDAQ:AMZN) slipped more than 3%, while travel and leisure stocks deepened their losses for the week, with cruise line and casino stocks coming under heavy pressure.

Tech stocks also played a big role in the broader market meltdown.

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

FedEx (NYSE:FDX), meanwhile, fell more than 3% as Wall Street cast doubt on whether the shipping giant's cost-saving measures will be enough to offset falling shipping volumes and higher inflation. The company released fiscal first-quarter results that fell short of estimates, but announced plans to ramp up shipping rates and generate total cost savings of $2.2 billion to $2.7 billion.

The "cost saving numbers, while impressive on a headline basis, is likely not nearly enough in the context of high inflation and declining volumes," Deutsche Bank said in a note.

Stock Market Today: Dow Bears Sharpen Claws as Recession Fever Spikes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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.
 
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