Wall Street: Wall Street down on fears of a recession

by Echo Wang

NEW YORK (Reuters) – The New York Stock Exchange ended lower on Wednesday after posting modest gains during the session as investors remained concerned about fears of a recession next year and a resurgence of the COVID-19 outbreak in China, the world’s largest oil exporter.

The Dow Jones index fell 1.10% or 365.85 points to 32,875.71 points.

The broader S&P-500 lost 46.03 points, or 1.20%, to 3,783.22.

The Nasdaq Composite fell by 139.94 points (1.35%) to 10,213.29 points.

As yields on 10-year US Treasuries rose for a third straight day, tech giants Apple, Amazon and Alphabet fell between 0.9% and 2.3%.

All 11 major S&P-500 sectors ended in the red, led by energy, down 2.2% as fears over China’s oil demand weighed on crude prices.

Investors are closely watching Beijing’s moves to reopen the Chinese economy despite a resurgence of the COVID-19 outbreak.

Down 20% year-over-year, the S&P-500 is on track for its worst annual loss since the 2008 financial crisis.

“This is a small continuation of the underlying dynamics; the market is finally starting to take seriously that we will have a recession in 2023,” said Michael Green, chief strategist at Simplify Asset Management, in New York. York.

While data showing easing inflationary pressures had given hope for less monetary tightening by the Federal Reserve (Fed) next year, the state of the labor market and the resilience of the US economy are raising concerns about higher interest rates for longer than expected.

On the value side, Tesla ended up 3.3% after a bumpy session, the day after its lowest in more than two years.

Southwest Airlines lost 5.2% after coming under fire from the US government for canceling thousands of flights.

(French version Jean Terzian)

Copyright © 2022 Thomson Reuters

Leave a Comment