Wall Street spins second day of losses due to recession nerves

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May 19, 2022 | 4:35 p.m.

The american stockss and bond yields fell due to continued concerns of the markets onto the health of the economy and a possible deceleration.

The S&P 500 it fell 0.58% to settle at 3,900.79 units; in turn the Industrial Average dow jones it fell 0.75% to stay at 31,253.13 units. Meanwhile he Nasdaq Composite it fell 0.26% to settle at 11,388.50 points.

In Mexico, the Index of Prices and Quotations (IPC) of the Mexican Stock Exchange (BMV) recovered after its fall on Wednesday and ended its day with a gain of 1.78% to close with 51, 289.91 points according to Invest.com.

International stocks fell. The Stoxx Europe 600 it lost 1.4%, led lower by shares in financial services and food and beverage companies.

While in Asia, the rate hang up seng Hong Kong fell 2.5%, the CSI 300 index of the largest stocks listed in Shanghai and shenzhen rose 0.2%, the Nikkei 225 Japan’s fell 1.9% and South Korea’s Kospi Composite fell 1.3%.

The S&P 500 fell into a volatile session on Thursday, with Cisco Systems tumbling after offering disappointing prospects, as investors worried about the impact of persistent inflation and the interest rate hike.

Investors continued to dump stocks fearing that rate hikes from the Federal Reserve to combat rapid inflation will push the economy into a recession.

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Economic recession makes markets nervous around the world

The concerns about consumer spendingthat helped bring the market out of the lows of the pandemic, have weighed on the stock returns and the bonds; markets are nervous about a possible economic recession.

I agree with you earnings reports of some of the largest retailers in the United States, in recent days have added to the concern that the rate of inflation highest in four decades is hitting American consumers and pushing the economy into an economic slowdown.

The combination of factors has led to steep losses for stocks and some corporate bonds, with many investors expecting the volatility to continue.

antonio saglimbeneGlobal markets strategist at Ameriprise Financial said economic data point to healthy consumer spending, allaying fears of a recession.

“For consumers to really cut back, they have to fear they’re going to lose their jobs and that’s not the environment we’re in,” he said.

In the market of raw Materialsthe oil prices closed higher on Thursday and rebounded after falling on Wednesday, amid a choppy session as equity markets pared losses shrugging off concerns of an economic downturn.

Retailers and technology companies also fall due to nervousness in the markets

The actions of walmart they concluded with losses of 2.74% and a value of 119.07 dollars, with which the retail giant closed its third consecutive day with losses. While Goal it also fell 5.96% to end with a price of 153.43 dollars per share, but marked its fourth consecutive day of losses.

Lowe’s it gained 2.20% after falling on Wednesday on reporting that comparable store sales were weaker than expected.

In the case of technology companies Cisco Systems Inc. fell 13.73% to close at 41.72 dollars; Apple lost 2.46% to close its shares at 137.35 dollars accumulating its second consecutive day of losses.

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