The Dow’s losses were capped by shares in Amgen Inc, which gained 4.9% after a report said Morgan Stanley upgraded its recommendation on the drugmaker’s stock to “overweight” from “equiweight.”
Bond prices also fell. The 10-year US Treasury yield rose about five basis points to 3.937.
The trajectory of the central bank’s interest rate hikes may tip the US economy into a recession, dragging down corporate profits.
The International Monetary Fund cut its global growth forecast for 2023 and sees US growth this year at a meager 1.6%, down 0.7 percentage points from July, reflecting an unexpected second-quarter contraction in GDP. Shares of Microsoft Corp, Twitter Inc, Amazon.com, Apple Inc, and Tesla Inc fell between 1% and 3.5%.
The executive director of JPMorganJamie Dimon warned Monday that the United States would likely slip into a recession in the next “six to nine months,” saying the S&P 500 could fall another 20% depending on whether the Federal Reserve engineers a soft or hard landing for the economy. economy.
“This is a terrible stock market environment dealing with a weakening economy, uncertainty about earnings and how long the Fed’s tightening will last, and confidence issues with extremely risk-averse investor psychology.”said David Bahnsen, chief investment officer at The Bahnsen. Group, in a note on Tuesday.
“We think the Fed will raise interest rates one or two more times until the Fed funds rate hits 4% and then pause, at which point the Fed will assess the damage done,” he added.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
