U.S. stocks are languishing in negative territory Tuesday afternoon amid rising fears about a possible recession due to rising inflation and the Federal Reserve’s tighter monetary policy stance.
Growth fears outweighed news that U.S. President Joe Biden may announce a rollback of some US tariffs on Chinese imports.
Investors also looked ahead to the release of the minutes of the central bank’s latest policy meeting, and the non-farm payrolls data.
Sharply lower crude oil prices weigh on energy stocks, contributing substantially to market’s weakness. The dollar’s climb to a near two-decade high is weighing as well. Technology stocks are regaining lost ground.
Among the major averages, the Dow is down 485.97 points or 1.56 percent at 30,611.29. The index had tumbled to 30,355.12 earlier in the day.
The S&P 500 is down 35.89 points or 0.94 percent at 3,789.44, while the Nasdaq is up 74.02 or 0.66 percent at 11,201.87, rallying from a low of 10,911.45.
Data from the Labor Department showed near orders for manufactured goods increased 1.6 percent month-on-month in the month of May, following an upwardly revised 0.7 percent rise a month earlier.
Factory orders excluding transportation in the United States increased 1.7 percent month-over-month in May of 2022, following an upwardly revised 0.6 percent rise in April.
Chevron, United Health, Travelers Companies, Caterpillar, IBM, Cisco Systems, JP Morgan Chase, Boeing, Johnson & Johnson, American Express, Goldman Sachs and Merck are down 1 to 5 percent.
Shares of Warner Bros Discovery Inc are down, weighed by reports the media and streaming firm’s unit, HBO Max, is halting production of original shows in Europe.
Nike is climbing more than 2 percent. Salesforce.com shares are also notably higher.
In overseas trading, Asian stocks advanced on Tuesday after reports emerged that the United States may decide to cut some tariffs on Chinese imports in an effort to tame record-high inflation. Data showing China’s services activity jumped to the highest level in nearly a year in June helped as well.
The major European markets closed sharply lower, weighed down by weak eurozone economic data. The pan European Stoxx 600 dropped 2.11 percent. The U.K.’s FTSE 100 drifted down 2.86 percent, Germany’s DAX fell 2.91 percent, and France’s CAC 40 declined 2.68 percent, while Switzerland’s SMI ended 1.65 percent down.
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