Apple falls, Wall Street extends losses as recession concerns mount

News Summary:

  • JPMorgan Chase & Co. Fears that the US Federal Reserve (Fed) will stick to a prolonged rate-hiking cycle have been heightened recently amid strong reports on jobs and the services sector. Other economic data, including weekly unemployment claims, the Producer Price Index, and this week’s University of Michigan Consumer Confidence Survey, will give him clues as to what to expect from the Fed on Dec. 27. “The downward pressure on the market has come as the market realizes it may need to keep raising rates longer than expected,” said Jason Pryde, chief investment officer at Private Fortune at Glenmede in Philadelphia.

  • US stock indexes fell in volatile trading on Wednesday as investors rated warnings from major Wall Street bankers about a looming recession. The benchmark’s S&P 500 has fallen for its fifth straight day, and the Nasdaq has fallen for its fourth straight day. Apple Inc shares fell 1.4% after Morgan Stanley lowered its iPhone shipment targets due to production delays at its Foxconn factory in China. Markets were also rocked by pessimistic statements from executives at Goldman Sachs Group Inc.,

It’s getting stronger, so hopes are starting to crumble a bit”. “Overall, the Fed has raised interest rates to a point where the market expects monetary policy to tighten enough to trigger a mild recession”. His CBOE volatility index, also known as the Wall Street Fear Index, rose to a two-week high of 23.01 amid growing investor concerns. Financial market participants expect the Federal Reserve to raise interest rates by 50 basis points in December, from 4.25% to 4.50%, and in May 2023, it could peak at 4.92%. he sees 91%.

Tesla fell 2.9%, his third consecutive day of declines, on fears of losing production at its Shanghai factory. Carvana Co plummeted 36.8% to a record low after Wedbush downgraded the used-car dealer’s stock from “neutral” to below average and he lowered his price target to $1. Issuance growth outpaced declines on the NYSE by a ratio of 1.01 to 1. Losers outperformed leaders on the Nasdaq by a ratio of 1.39 to 1.

As of 9:54 am ET, the Dow Jones Industrial Average is down 80.70 points (0.24%) to 33,515.64, the S&P 500 is down 12.07 points (0.31%) to 3,929.19, and the Nasdaq Composite is down 70.86 points. did. or 0.64% at 10,944.03. Concerns over sharply rising borrowing costs have boosted the dollar, weakening demand for risk assets such as stocks this year, and the S&P 500 is on track to enjoy a 17.5% gain for the third consecutive year. Four of the 11 major S&P sector indices rose in early trading, with healthcare leading the sector and technology the worst performer, down 1%.