US stocks are sinking on Tuesday
2022.07.05 19:46
US stocks are sinking on Tuesday after the long holiday weekend as investors renewed their fears about a looming recession.
At 10:29 AM ET the Dow Jones Industrial Average was down 631 points, or 2%, while the S&P 500 was down 1.8% and the NASDAQ Composite was down 1%.
This is a big week for economic data, including the monthly nonfarm employment report from the government on Friday. Before that comes out, investors will get to assess the minutes of the Federal Reserve’s most recent policy meeting and parse any hints of what actions are to come as the central bank tries to tame inflation.
Analysts have been sending mixed signals about the outlook. On Tuesday, Credit Suisse cut its S&P 500 forecast for the year to 4,300 from 4,900 though said a recession will likely be avoided. The S&P is trading around 3,756 currently.
The pessimism is weighing on sectors that normally benefit from economic growth, such as banking and travel. The KBW Bank ETF, which includes many of the biggest U.S. banks, was down 2.8%, while the U.S. Global Jets ETF (NYSE:JETS) was down 3.2%. Cruise line Carnival Corporation (NYSE:CCL) was down 4.5%, while Walmart Inc (NYSE:WMT) dipped 0.5%.
Shares of department store Kohl’s Corp (NYSE:KSS) lost another 3.7% on Tuesday after falling 20% on Friday, when it said it ended deal talks.
Tesla Inc (NASDAQ:TSLA) shares lost 3.7% after reporting it delivered more than 254,000 vehicles in the second quarter, a decline of more than 17% from the first quarter.
Oil sold off sharply. Crude Oil WTI Futures was down 5%, to around $103 a barrel and Brent Oil Futures was down 5.6% to $107 a barrel. Gold Futures fell 0.6%, to $1,791.
Also worth noting, the euro fell to the lowest level against the dollar in two decades, to around $1.0281.
