U.S. stocks fell Tuesday and bond yields spiked as investors worried that higher interest rates and stubborn inflation will tip the economy into recession and hurt corporate earnings.
The Dow Jones Industrials regressed 110.1 points, to open Tuesday at 29,092.78
The S&P 500 doffed 39.07 points, or 1.1%, to 3,573.32.
The NASDAQ Composite faded 166.05 points, or 1.6%, to 10,376.05, thus bringing both the S&P 500 and the NASDAQ to new lows. Weighing heaviest were big tech names such as Meta Platforms, which are sensitive to rising rates. Semiconductors also declined, continuing a rout that began Monday.
The moves came as investors look ahead to key inflation data that will inform how aggressively the Federal Reserve will hike interest rates to tame inflation. On Wednesday, the producer price report will be released and followed by the September consumer price index Thursday. On Friday, September retail sales will give further insight into consumption.
JPMorgan CEO Jamie Dimon on Monday warned that the U.S. would likely fall into a recession over the next “six to nine months,” and said the S&P 500 could fall another 20% depending on whether the Federal Reserve engineers a soft or a hard landing for the economy.
Meanwhile, Barclays cut Apple's price target 8% to $155, which implies the stock's value will grow 10% over the next year.
Treasury prices declined, lifting yields to 3.95% from Monday's 3.92%. Treasury prices and yields move in opposite direction.
Oil prices dipped $2.69 to $88.44 U.S. a barrel.
Gold prices dropped $3.40 to $1,671.80 U.S. an ounce.