Wall Street fell due to growing economic growth concerns

  • The S&P 500 Index is back to its lowest level in nearly two years
  • Airlines and cruises canceled due to Hurricane Ian
  • CarMax slips by missing second-quarter forecast
  • Indices down: Dow 1.54%, S&P 2.15%, Nasdaq 3.05%

(Reuters) – Wall Street fell on Thursday, on fears of a global economic slowdown from aggressive central bank policy and fears that the collapse in global currency and debt markets could turn into stocks.

Nasdaq (nineteenth) It fell 3% due to losses in huge growth names like Amazon.com Inc and Apple Inc (AAPL.O)Microsoft Corp, Meta Platforms Inc, Tesla Inc (TSLA.O). It was low between 3.09% and 6.25%.

S&P 500 . Index (.SPX) It fell to its lowest level since November 30, 2020, and is now heading for a monthly decline of nearly 8%.

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The benchmark index posted its first gains in seven sessions on Wednesday on the back of easing Treasury yields after the Bank of England said it would buy long-term British bonds to restore financial stability in the markets.

However, the relief was short-lived as the British pound fell and bond prices fell on Thursday, with assets shifting to safe-haven US Treasuries and higher-rated German bunds. Read more

The S&P 500 lost about $9.1 trillion in market capitalization this year and was last valued at $31.2 trillion, according to Datastream.

Standard & Poor’s 500 loses $9 trillion in 2022, defeating the market

“There are a lot of huge macro issues right now that only scare stock investors who normally want to look at corporate fundamentals,” said David Russell, Vice President of Market Intelligence at TradeStation Group.

“So it’s like trying to go out and do gardening when there’s a hurricane coming in.”

The yields of many Treasuries, which are nearly risk-free if held to maturity, now dwarf the S&P 500 dividend yield, which recently stood at about 1.8%, according to Refinitiv Datastream. Read more

Meanwhile, comments from Cleveland Federal Reserve Chair Loretta Meester echoed other central bank officials during the week, who pledged more rate hikes to tame inflation. Read more Read more Read more

At 12:23 p.m. ET, the Dow Jones Industrial Average (.DJI) It was down 457.43 points, or 1.54%, to 2,9226.31 Standard & Poor’s 500 (.SPX) The index fell 79.82 points, or 2.15%, to 3,639.22 points, and the Nasdaq Composite Index (nineteenth) It was down 336.57 points, or 3.05%, to 10,715.07 points.

All 11 S&P 500 sector indices fell between 1% to 3%, with consumer appreciation (.SPLRCD) Driving the slide as auto stocks fell.

CarMax Company (KMX.N) It fell 23.72% after the used-car retailer missed expectations for second-quarter results, weighed by consumers cutting spending amid inflation, higher interest rates and higher auto prices.

General Motors Corporation (GM.N) The Ford Motor Company (FN) It also took a hit, dropping 5.5% each.

Airlines and cruise operators have backed away from canceling or delaying flights after Hurricane Ian hit Florida’s Gulf Coast with catastrophic force. Read more

American Airlines (AAL.O) It fell 4.3%, while United Airlines Holdings stock fell (UAL.O)Southwest Airlines, (LUV.N) and Delta Airlines (DAL.N) It fell between 2.3% and 3.9%.

Cruise companies Norwegian Cruise Line Holdings Ltd (NCLH.N) And Carnival Company (CCL.N) It fell 4.3% and 5.7%, respectively.

Declining issues outnumber applicants by 7.26 to 1 on the New York Stock Exchange and 3.87 to 1 on the Nasdaq.

The S&P recorded no new 52-week high and 85 new low, while the Nasdaq made six new highs and 393 new lows.

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Additional reporting by Susan Mathew, Ankika Biswas and Shreyachi Sanyal in Bengaluru; Additional reporting by Medha Singh. Editing by Anil de Silva and Aaron Coeur

Our criteria: Thomson Reuters Trust Principles.

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