Stocks fall as investors’ recession expectation
Stocks retreated as recession expectations resurfaced on Wall Street, and investors eyed key inflation statistics later this week.
- Dow Jones Industrial Average traded down 112 points, or 0.32%
- S&P 500 declined 0.72%
- Nasdaq Composite fell 1%
Tech stocks were lower, with Apple shares down 1.92% and Alphabet down 1.73%. Moreover, Tesla shares fell 3.62% after the company said it would cut prices again on some electric cars.
As investors pick up on key signs of a weakening labor market, markets are coming off a tough week. Friday’s March jobs survey showed a steady economy and inflation, sending higher stock futures and Treasury yields.
Furthermore, Nonfarm payrolls advanced 237,000 in the month. The unemployment rate fell back to 3.5%, against expectations that it would not exceed 3.62% the previous month.
According to Glenmede’s chief investment officer of Private Wealth, the report is consistent with forecasts of a slow recession in the United States, which does not indicate a quick resolution of inflation problems.
Figures for another quarter of rate hikes in May should be higher as the data doesn’t justify a Fed stop.
Investors expect a busy week with economic analysis, including the latest consumer price index statistics due on Wednesday.
Other movements in the markets
Shares of Micron Technology rose 6% after Samsung Electronics announced a cut in memory chip production. Many Wall Street economists say the move will provide the impetus to speed up the recovery of the memory chip industry.
- Pioneer Natural Resources shares advanced 7%.
- Exxon shares dropped 0.6%.
- Tesla’s electric car stock retreated nearly 2%. Tesla has said it plans to cut car prices again.
- The shares of the First Republic dropped by 3%.
