Wall Street dropped amid concerns the Federal Reserve’s campaign to rein in decades-high inflation may cause a deep downturn
U.S. stocks dropped on Tuesday after economic data came in weaker than predicted. That raised worries that the Federal Reserve’s moves to rein in decades-high inflation may cause a deep downturn.
The Dow lost 6-tenths of one-percent. The S&P 500 fared about the same while the Nasdaq slipped half of one percent.
Job openings in February fell to their lowest level in nearly two years which raised concerns about the health of the economy, according to RiverFront Investment Group Chief Investment Officer Kevin Nicholson.
“The markets are being driven by the JOLTS report that came out this morning that showed that we were under 10 million jobs for the first time since May of 2021. And so that gave the market the impression that the, you know, the labor market was slowing and that the Fed would have to take that into consideration and probably not raise rates”
Also, factory orders fell more than anticipated, their second straight monthly decline.
Bank stocks took a hit after JPMorgan Chase CEO Jamie Dimon warned in a letter to shareholders that the U.S. banking crisis is ongoing and that its impact will be felt for years.
Other stocks making moves included Virgin Orbit Holdings, which sunk 23-percent after the satellite launch company filed for Chapter 11 bankruptcy after it failed to secure long-term funding.
Shares of AMC Entertainment also fell. Its stock plummeted 23-percent after the movie theatre chain said it agreed to settle litigation and proceed with converting its preferred stock into common shares. #trending #featured
