Stock losses deepen on a spate of bad news
2023-09-27
Summary:
The Dow fell Tuesday after the latest home sales and consumer confidence reports stoked recession concern.
The Dow fell Tuesday after the latest home sales and consumer confidence reports stoked recession concern.
The benchmark closed below its 200-day MA for the first time since May after its worst day since March, which could prompt more stock bears to pile in.
In September, the Conference Board's Consumer Confidence Index declined to 103, down from 108.7 in August, according to data released Tuesday.
That marked the largest monthly decline for since December 2020. Historically, any number below 80 signals a recession within the next year.
Homes under contract were 675,000 for the month, down 8.7% from July, according to the Commerce Department. Economists polled by Dow Jones anticipated a total of 695,000.
Notably, food and gas prices growth reaccelerated recently, strengthening the case for more interest rate hikes going forward against growth stocks in particular.
JPMorgan CEO Jamie Dimon warned markets may not be prepared for a worst-case scenario where the Fed lifts rates to 7% alongside stagflation.
Investors this week are also grappling with negotiations in Washington, as lawmakers hope to avert a government shutdown that could take place if Congress doesn’t agree on a spending bill.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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