By DAMIAN J. TROISE-AP Business Writer
New York (AP) — Thursday morning trading on Wall Street has caused stock prices to fall sharply, putting them on track to conclude the worst quarter since the early days of the pandemic.
The S & P 500 fell 1.5% at 10:33 am in the east.The benchmark index is in the dire streak that dragged it in Bear market Earlier this month, it was down 21% this year. We are closing the worst quarter since the beginning of 2020.
The Dow Jones Industrial Average fell 417 points (1.3%) to 30,613, while the Nasdaq fell 2.1%. Small business stocks also fell. Russell 2000 lost 1.6%.
Treasury yield for 10 years, Helps set mortgage rates, It fell from 3.09% to 3.02% at the end of Wednesday.
Retailers and other businesses that rely directly on consumer spending have suffered the most losses throughout the year. Amazon fell 4.8% and Target fell 3.2%.
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This year’s rise in inflation is behind much of the broader market downturn as businesses raise prices in everything from food to clothing and consumers are under severe pressure. Inflation remains stubbornly hot, according to a series of recent economic trends. Central banks have been aggressively raising interest rates Trying to slow economic growth to cool inflation.
A measure of inflation closely tracked by the Federal Reserve Up 6.3% in May From the previous year, it has not changed from the April level. A Thursday report from the Commerce Department also said that consumer spending rose at a 0.2% slump from April to May.
Following the report we were interested in earlier this week, this update shows: Consumer confidence fell to the lowest level in 16 months.. The government also US economy shrank 1.6% in the first quarter And weak consumer spending was an important part of that contraction.
Investors are worried about it U.S. could fall into recession Inflation hurt businesses and consumers. A key concern concerns the Fed’s rate hikes, which can overwhelm economic growth and actually cause a recession.
The situation became even more complicated after the addition of supply chain issues. COVID-19 blockade in China When Russia invades Ukraine.. The war in Ukraine caused soaring oil prices this year, resulting in Record high gasoline price.. The OPEC Petroleum Cartel Allied producers decided to increase crude oil production on Thursday, but that amount would be of little help in alleviating soaring gasoline prices and energy fuel inflation in pumps that are plagued the global economy. ..
US oil prices have fallen 3.4%, but are still up 43% in 2022.
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Stocks fall sharply, heading for the worst quarter since early 2020 | Health
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