Wall Street closed lower on Thursday, extending losses in afternoon trading as a series of economic data failed to alter the expected course of aggressive tightening by the Federal Reserve. amid growing warnings of a global recession.
- The Dow Jones Industrial Average fell 173.07 points, or 0.56%, to 30,962.02 points; the S&P 500 index fell 44.60 points, or 1.13%, to 3,901.32 units; and the Nasdaq Composite fell 163.54 points, or 1.4%, to 11,556.14.
- The sell-off gathered momentum towards the end of the session, with market leaders including Microsoft Corp (NASDAQ: MSFT ). , Apple Inc (NASDAQ: AAPL ), and Amazon.com Inc (NASDAQ: AMZN ). hitting the Nasdaq harder.
- Banks, sensitive to movements in interest rates, helped soften the decline of the Dow Jones index.
- “It’s been a tough year and investors are cautious,” said Matthew Keator, managing partner of the Keator Group, a wealth management firm in Lenox, Massachusetts.
- Mood tilted further to the downside after the World Bank and International Monetary Fund (IMF) warned of an impending global economic slowdown.
- A series of mixed economic data, led by better-than-expected retail sales, cemented the likelihood of another 75 basis point interest rate hike by the Fed at the end of next week’s policy meeting.
- “The question is what will happen in November.” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
- While the retail sector surprised to the upside, declining jobless claims reaffirmed the strength of the labor market, and a drop in import prices supported the past inflation narrative.
- But a surprise drop in industrial production and a contraction in manufacturing in the Atlantic region fueled economic pessimists.