S&P and Nasdaq extend losing streaks amid growing recession worries

S&P and Nasdaq extend losing streaks amid growing recession worries

  • Apple down after Morgan Stanley cut December shipment target
  • Tesla hits production loss concerns
  • Carvana records the worst daily decline in its history
  • Indices: Dow flat, S&P down 0.19%, Nasdaq 0.51%

Dec 7 (Reuters) – The S&P 500 and Nasdaq closed on Wednesday after a choppy session on Wall Street as investors struggled to grasp a clear direction as they assessed how the Reserve’s monetary policy tightening federal government could affect American businesses.

For the benchmark S&P 500 index (.SPX), it was the fifth consecutive session that it fell, while the Nasdaq (.IXIC) ended lower for the fourth consecutive time. The Dow ended a two-game losing streak as it ended unchanged from the previous day.

The Nasdaq was dragged lower by a 1.4% decline in Apple Inc (AAPL.O) following the reduction in Morgan Stanley’s iPhone shipment target and a 3.2% drop from Tesla Inc (.IXIC) due to production loss concerns.

Markets were also rattled by downbeat comments from senior executives at Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) on Tuesday that a mild recession to more pronounced was probably in front.

Concerns that the US central bank may stick to a longer rate hike cycle have intensified recently in the wake of jobs and service sector reports.

More economic data, including weekly jobless claims, the producer price index and the University of Michigan consumer sentiment survey this week, will be on the watch list for clues on this. what to expect from the fed on december 14.

“It feels like we’re in this very uncertain time where investors are trying to figure out what’s most important, as policymakers are slowing rates but the data isn’t playing,” said analyst Craig Erlam. senior market at OANDA.

“The market tries to balance headwinds and tailwinds, which creates some confusion.”

The CBOE Volatility Index (.VIX), also known as Wall Street’s Fear Gauge, closed at 22.68, its highest level since Nov. 18.

Money market participants see a 91% chance that the Fed will raise its key policy rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%.

The S&P 500 (.SPX) lost 7.34 points, or 0.19%, to close at 3,933.92 and the Nasdaq Composite (.IXIC) lost 56.34 points, or 0.51%, to close at 10,958.55. The Dow Jones Industrial Average (.DJI) was flat, ending at 33,597.92.

Concerns about a sharp rise in borrowing costs have boosted the dollar, but have weighed on demand for risky assets such as equities this year. The S&P 500 is on track for a three-game winning streak.

Three of the 11 major S&P sector indices were higher, including the health care index (.SPXHC). Technology (.SPLRCT) and Communication Services (.SPLRCL), down 0.5% and 0.9% respectively, were the worst performers.

Energy (.SPNY) fell for its fifth consecutive session. The sector’s performance was weighed down by the further fall in US crude prices, settling at their lowest level in 2022, as worries about the outlook for global growth wiped out any gains since the invasion of Ukraine. by Russia has exacerbated the worst global energy supply crisis in decades.

Carvana Co (CVNA.N) had its worst day as a public company, losing almost half of its stock market value, after Wedbush downgraded the used car retailer’s stock for “underperforming”. from “neutral” and lowered his price target to $1.

Meanwhile, United Airlines (UAL.O) was trading down 4.1%. Unions representing various airline workers said they would join forces to negotiate contracts.

Travel-related stocks were generally down. Delta Air Lines (DAL.N) and American Airlines Group (AAL.O) fell 4.4% and 5.4% respectively, with cruise operators Carnival Corp (CCL.N) and Norwegian Cruise Line Holdings (NCLH .N) and accommodation-linked Airbnb Inc (ABNB.O) and Booking Holdings (BKNG.O) all falling between 1.7% and 4.4%.

Volume on U.S. exchanges was 10.29 billion shares, compared to an average of 10.98 billion for the full session over the past 20 trading days.

The S&P 500 posted seven new 52-week highs and seven new lows; the Nasdaq Composite recorded 61 new highs and 307 new lows.

Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Shashwat Chauhan in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker

Our standards: The Thomson Reuters Trust Principles.

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