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U.S. Stocks Open Lower as Recession Fears Return After Holiday Break

Published 05/07/2022, 11:58 pm
© Reuters.
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By Liz Moyer

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

At 9:43 AM ET the Dow Jones Industrial Average was down 560 points, or 1.8%, while the S&P 500 was down 1.8% and the NASDAQ Composite was down 1.7%.

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 (SIX:CSGN) 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.

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.

 

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