Stock market today: Dow snaps win streak after paring gains amid recession jitters
Investing.com | Author Yasin Ebrahim
Published Apr 12, 2023 04:11PM ET
Updated Apr 12, 2023 04:30PM ET
By Yasin Ebrahim
Investing.com -- The Dow snapped a four-day winning streak Wednesday, after giving up intraday gains as investors weighed the Federal Reserve’s minutes flagging recession concerns and data showing cooling inflation.
The Dow Jones Industrial Average fell 0.1%, or 38 points, giving up a more than 200-point intraday gain. The Nasdaq fell 0.9% and the S&P 500 slipped 0.4%.
The minutes of the Fed’s March meeting showed that members were now forecasting a “mild recession” later this year in the wake of the banking crisis and showed that members were close to pausing rate hikes in March.
“Banking-sector developments moved the Fed staff's projections to a mild recession starting later this year, and real GDP growth remaining below potential through 2024,” Morgan Stanley said and kept its expectations for a 0.25% rate hike in May unchanged.
The Fed minutes arrived just hours after the data showing inflation pressures were cooling, with many economists noting the slower rise in shelter cost, which makes up a large chunk of core inflation as a positive development.
“[T]his morning’s cooler-than-expected monthly rise will reinforce the argument the Fed can take a pause, while the Committee assesses the full impact of earlier policy metrics on the broader economy and price pressures,” Stifel said in a note.
Concerns about the recession and the impact on the consumer forced consumer stocks lower, with travel and leisure as well as retail stocks leading to the downside.
Norwegian Cruise Line Holdings Ltd (NYSE:NCLH), Carnival Corporation (NYSE:CCL), and Caesars Entertainment Corporation (NASDAQ:CZR) were among the biggest losses in the consumer sector, with Tesla (NASDAQ:TSLA) and Amazon (NASDAQ:AMZN) also weighing on the sector.
Tesla is reportedly eyeing another price cut Model Y and Model 3 vehicles in China, with the latter's price expected to be cut by about 14.8%, according to media reports.
Energy stocks, meanwhile, ended just above the flatline as oil prices jumped even as data showed an expected rise in U.S. weekly crude inventories.
U.S. crude stockpiles rose 597,000 barrels in the week through Apr. 7, confounding expectations for a draw of 3.7 million.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.