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Stock market sales deepen as Nasdaq falls 3%

“Currently, there is a lot of uncertainty about whether the recession will occur in this market.”

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Nasdaq and S & P 500 fell 3% on Wednesday as growth stocks slowed amid concerns about economic growth. Meanwhile, Target plunged to the bottom of the S & P 500 after retailers became the latest victims of rising prices.

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At 12:08 pm on the ET, the Dow Jones Industrial Average fell 836.46 points (2.56%) at 31,818.13, the S & P 500 fell 125.35 points (3.07%) at 3,963.50, and the Nasdaq Composite fell 432.54 points. Or 3.61 percent, 11,551.99.

Canada’s TSX fell 311.49 to 20,179.52.

Target Corp’s first-quarter profits have been halved, and the company has warned that higher fuel costs and fares will increase profit margins. Its share fell by 25.2%, tracking the worst day since the Black Monday crash on October 19, 1987.

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Retailer results will be the day after rival Walmart Inc adjusts its profit forecasts. SPDR S & P Retail ETFs fell 8.2%.

All 11 major S & P sectors fell, with consumer discretionary and tech stocks down 5.7% and 3.5%, respectively.

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Recently, rising inflation, conflicts in Ukraine, prolonged supply chain roars, pandemic-related blockades in China, and the prospect of aggressive policy tightening by central banks have put pressure on markets and led to a global economic slowdown. Is causing concern.

The Wells Fargo Investment Institute adjusted its economic forecasts on Wednesday based on economic data to base the mild recession in the United States from the end of 2022 to the beginning of 2023.

Federal Reserve Chair Jerome Powell vowed on Tuesday that the US central bank would raise interest rates as high as necessary to kill the surge in inflation.
Traders are pricing the Fed to raise rates by 50 basis points in June and July.

Zachary Hill, Head of Portfolio Management at Horizon Investments, said:
“The federal government is completely obsessed with tightening its fiscal position, which means lower stock valuations and wider credit spreads.”

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The S & P 500 has fallen 16.8% so far in 2022, and Nasdaq has fallen more than 26% under the influence of growth stocks.

“We are pricing for fear of growth,” RBC Capital Markets’ Lorical Vasina told Bloomberg TV. “The market is trying to find a bottom here. Currently, there is a lot of uncertainty about whether the recession will occur or whether it will be another near-death experience.”

Stock valuations, as measured by futures price-earnings ratios, have plummeted in recent weeks, making them more attractive to some investors.

Brooke May, Managing Partner of Investment Adviser Evans May Wealth, said:

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“But at this point, the ratings are starting to look attractive and can be low, but I hope they are nearing the bottom as they are fairly fair ratings.”

Rate-sensitive big tech and growth companies such as Microsoft Corp, Apple Inc, Google owners Alphabet Inc, Meta Platforms, Tesla Inc, and Amazon.com led a sharp recovery in the previous session, 3.5. It fell between% and 6.0%.

The CBOE Volatility Index, also known as the Wall Street Fear Gauge, has risen to 29.54 points after falling six times in a row.

With a 4.97: 1 ratio on the New York Stock Exchange and a 3.07: 1 ratio on NASDAQ, the decline in issuance outpaced the starting lineup.

The S & P index recorded one new 52-week high and 32 new lows, while Nasdaq recorded 24 new highs and 129 new lows.

© Thomson Reuters 2022

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Stock market sales deepen as Nasdaq falls 3%

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