US Stocks decline on growing recession fears

8 Dec 2022 , 09:26 AM

The US stock market finished lower on Wednesday, 07 December 2022, registering third straight day of losing streak, as recession rhetoric from major US banks and anxious about the outlook for interest rates curbed enthusiasm about Chinas major shift in its tough zero-COVID policy. At the close of trade, the Dow Jones Industrial Average index edged up 1.58 points, or 0.00%, to 33,597.92. The S&P500 index decreased 7.34 points, or 0.19%, to 3,933.92. The tech-heavy Nasdaq Composite Index declined 56.34 points, or 0.51%, to 11,958.55. Total 8 of 11 sectors of the S&P500 index declined, with communication services was worst performer, erasing 0.9%, while healthcare sector outperformed, gaining 0.85%. Market participants risk sentiments dampened after warnings of a looming recession from major Wall Street bankers. Top executives at Goldman Sachs Group Inc, JPMorgan Chase & Co and Bank of America Corp said on Tuesday that inflation would erode consumer spending power and a mild to more pronounced recession was likely ahead. The Fed is certain to raise interest rates again on December 14, but it is not clear if the central bank will do so by just a half point or if it will boost rates by three-quarters of a point for the fifth straight time. Continued strength in the ISM Services data and jobs market has some worried that inflation is still not yet under control. Investors awaiting for more economic data, including weekly jobless claims, producer price index and the University of Michigans consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on 14 December 2022. Chinas national health authority said on Wednesday that asymptomatic COVID-19 cases and those with mild symptoms can self-treat while in quarantine at home. Cross-region travelers in China will no longer need to show Covid-negative test results, according to a National Health Commission release. Areas that are not designated as high-risk cannot halt work or production, the notice said. Covid patients without symptoms can also choose to isolate at home for five days, it said. Among Indian ADR, Tata Motors sank 1.1% to $24.91, INFOSYS was down 0.1% at $19.39, WNS Holdings declined 0.1% to $82.25, HDFC Bank shed 0.95% to $67.57, and Wipro was down 0.4% to $4.90. Dr Reddys Labs added 0.02% to $53.25, ICICI Bank added 0.5% to $22.69, and Azure Power Global added 0.4% to $4.82. Powered by Capital Market – Live News