Market Snapshot: U.S. stocks close at lowest levels in more than a month as recession fears mount

by | Dec 19, 2022 | Stock Market

U.S. stocks booked a fourth straight session of losses on Monday, extending back-to-back weekly losses to finish at their lowest levels since early November, as recession fears dominated Wall Street.How stocks traded
The Dow Jones Industrial Average
DJIA,
-0.49%
finished down 162.92 points, or 0.5%, at 32,757.54.

The S&P 500
SPX,
-0.90%
ended 34.70 points, or 0.9%, lower at 3,817.66.

The Nasdaq Composite
COMP,
-1.49%
dropped 159.38 points, or 1.5%, closing at 10,546.03.

Those were the lowest closes for all three indexes since Nov. 9, based on Dow Jones Market Data.

On Friday, the S&P 500 logged a 2.1% weekly loss and ended at its lowest level since Nov. 9. The Dow Jones Industrial Average saw a 1.7% weekly fall and the Nasdaq dropped 2.7%.

What drove the market Investors have become increasingly concerned about a recession many feel is all but inevitable given the determinedly hawkish stance of major monetary authorities, such as the Federal Reserve and European Central Bank, which continue to battle high inflation. Read: The stock market is sliding because investors now fear recession more than inflation Last week, alongside the Bank of England, the two central banks increased interest rates by 50 basis points to multiyear peaks and stressed that borrowing costs would likely go higher for longer than the market had hoped. “The Fed and ECB seem determined to leave a lump of coal in everyone’s stockings this holiday season,” said Stephen Innes, managing partner at SPI Asset Management. “With economic data undershooting expectations, it’s not a stretch to think investors may shift their focus from inflation and the Fed to the growing impact that the Fed’s actions are likely to have on the economy in 2023,” Innes said.Analysts noted that investors had shifted from believing that bad news on the economy was good news for both bonds and equities — because it discouraged central banks from being too aggressive in their policy tightening — and were now taking bad economic news for what it is, a scenario that may damage company earnings.

Source: BTIG

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