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S&P and Nasdaq Apple Inc, Microsoft Corp and Amazon.com lost their weight by about 2% and 3%, respectively. The blue-chip Dow dropped nearly 1.6%.
“The market was fine to date until consumer confidence numbers came out,” said Peter Tuz, president of the Chase Investment Council in Charlottesville, Virginia. “It was weak and the markets immediately started selling.”
With the end of the month and the second quarter two days away, the benchmark S&P 500 is poised for the biggest first half decline since 1970.
All three indices are headed for two consecutive quarters of decline for the first time since 2015.
“At some point this aggressive selling is going to end, but it doesn’t look like it’s going to happen anytime soon,” said Tim Griskey, senior portfolio strategist in New York.
Data released on Tuesday morning shows that conference boardThe US Consumer Confidence Index fell to its lowest level since February 2021, with near-term expectations reaching their most pessimistic level in nearly a decade.
The growing gap between the “current status” and “expectations” components of the Conference Board has widened to levels that often precede recessions:
The Dow Jones Industrial Average fell 491.27 points, or 1.56%, to 30,946.99, the S&P 500 fell 78.56 points, or 2.01%, to 3,821.55, and the Nasdaq Composite fell 343.01 points, or 2.98%, to 11,181.54.
Ten of 11 key sectors in the S&P 500 ended the session in negative territory, with consumer discretionary losing the biggest percentage. The energy sector was the only one to benefit from rising crude oil prices.
With some market catalysts and market participants gearing up for the Fourth of July holiday weekend, the day’s selloff cannot be blamed entirely on consumer confidence reports, Tom said. hanlinNational Investment Strategist at US Bank Wealth Management in Minneapolis, Minnesota.
“It’s difficult to attribute (market volatility) to one economic data point with so much noise around quarter-end portfolio rebalancing,” Hanlin said.
“There’s not a lot of new information out there and yet you look at this volatile stock environment,” he said, adding that until companies start earning earnings, there won’t be a lot of new information.
There are several weeks left for second-quarter reporting to begin, 130 S&P 500 companies have pre-announced. Of those, 45 have been positive and 77 have been negative, resulting in a negative/positive ratio of 1.7 stronger than in the first quarter, but weaker than a year ago, according to Refinitiv data.
Nike Inc slipped 7.0% after expected revenue fell below forecast.
Occidental Petroleum Corp shares rose 4.8% after Warren Buffett’s Berkshire Hathaway Inc. increased its stake in the company.
The number of declining issues is greater than those going forward NYSE by a 2.28-to-1 ratio; On the Nasdaq, a 2.70-to-1 ratio favored the downside.
The S&P 500 posted a new 52-week high and 29 new lows; The Nasdaq Composite posted 29 new highs and 131 new lows.
Volume on US exchanges stood at 11.54 billion shares, compared to an average of 12.99 billion over the past 20 trading days.
(Reporting by Stephen Culp; Additional reporting by Sinead Kairav and Caroline Valetkevich in New York; Shreyashi Sanyal and Amrita Khandekar in Bengaluru; Editing by Grant McCool)
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