Stocks close mostly lower as selling pressure continues

US stocks extended this week’s downtrend on Wednesday to cap a subdued session with losses as the prospect of persistently higher rates and slowing growth continued to weigh on investor sentiment.

The S&P 500 (^GSPC) fell 0.2 percent, a fifth straight day of declines, while the Dow Jones Industrial Average (^DJI) traded on a solid line. Technology heavyweight Nasdaq Composite ( ^IXIC ) fell 0.5%.

In commodity markets, oil extended its losses to around $72 a barrel after falling as much as 10% this week to its lowest level since January.

“Fears are growing that economies are in for a tough time ahead as inflation heats up and the bitter interest rate medicine used to fuel it,” Hargreaves Lansdown senior investment and market analyst Susannah Streeter said in a morning note. said recession warnings from US bank bosses and gloomy trade data in China. “Despite the easing of restrictions today, it is clear that China’s Covid nightmare is not over.”

A flurry of mixed comments from Wall Street leaders on Tuesday added to the sentiment already dampened this week as many voiced concerns about the inflation numbers and rising interest rates on US consumers.

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JPMorgan Chief Executive Officer Jamie Dimon said the $1.5 trillion in excess savings in American bank accounts is being eroded by rising rates, while warning that the lack of one-time payments could “destroy the economy and lead to a mild or moderate recession.” difficult to fear.” Bank of America President Brian Moynihan echoed a similar message, noting that while consumers are still spending money, the pace is starting to slow.

Meanwhile, Goldman Sachs ( GS ) CEO David Solomon predicted that its stocks would decline by a barrel in 2023 and put the likelihood of a modest decline at just 35% — a view that contradicted internal economists at his investment bank, who which predict in their core. predicts that the US will at least avoid a recession next year.

“There’s a very reasonable possibility that we’re going to have a recession of some kind,” Solomon said in an interview at the Wall Street Journal’s CEO Forum Wednesday afternoon.

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David Solomon, CEO of Goldman Sachs, speaks at the Global Financial Leaders Investment Summit in Hong Kong, China on November 2, 2022.  REUTERS/Tyrone Siu

David Solomon, CEO of Goldman Sachs, speaks at the Global Financial Leaders Investment Summit in Hong Kong, China on November 2, 2022. REUTERS/Tyrone Siu

Reports that China’s government will roll back some of its zero-covid-19 regulations appeared to pressure investors to ease restrictions in the face of overseas economic data showing a drop in imports and exports in November.

Back in the U.S., shares of Campbell Soup ( CPB ) rose nearly 6% after the canned goods maker reported earnings that beat Wall Street estimates and raised its full-year forecast. The company said soup sales in the United States rose 11 percent due to increased demand for ready-to-serve soups, canned soups and soups, reflecting a recent shift among consumers to value food shopping because that inflation weighs on families.

Shares of Apple ( AAPL ) fell 1.4%, a day after Bloomberg News reported that the iPhone maker has scrapped self-driving plans for its future electric vehicle and pushed back the car’s release date to 2026. Murata Manufacturing expects Apple to further reduce its iPhone 14 production plans due to weak demand.

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Online used car retailer Carvana ( CVNA ) also fell as much as 43% after the company’s biggest creditors signed an agreement to cooperate in potential restructuring talks as the company faces a growing risk of bankruptcy. He was also in the eyes.

Investors are awaiting the next round of economic data as the Federal Reserve’s next rate meeting of the year approaches. Readings on weekly jobless claims, producer price inflation, and consumer sentiment are due later this week, but the most important data point for clues about the Fed’s guidance for interest rates is the Consumer Price Index (CPI) which on Tuesday, the same day as the United States. Central bank officials schedule their next two-day meeting in 2022.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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