US stock market: S&P records its fourth consecutive fall as Wall Street is affected by recession worries

Tuesday's stock market decline added to the losses from the previous session as Wall Street was gripped by recession worries.

The S&P 500 extended its losing skid to four sessions as Wall Street finished down on Tuesday as uneasy investors worried about Federal Reserve rate rises and new warnings of an impending recession.

The Nasdaq Composite fell 2% to conclude at 11,014.88, while the S&P 500 lost 1.44% to end at 3,941.26. To end the day at 33,596.34, the Dow Jones Industrial Average lost 350.76 points, or 1.03%.

Stocks continued their downward trend from Monday, with the S&P dropping for a fourth straight day and seven consecutive negative trading sessions. The Dow has lost more than 830 points over the past two days thanks to Tuesday's developments.

Following news that European Union authorities have decided the firm should not demand customers to accept to tailored adverts based on their digital activities, Meta Platforms Inc. pulled down markets as its shares fell 6.8%.

Technology names, however, often suffered as investors exercised caution toward fast-growing businesses whose performance would be sluggish in a difficult economic climate. The tech-heavy Nasdaq was pushed lower for a third session in a row as Apple Inc, Amazon.com Inc, and Alphabet Inc all had 2.5% to 3% declines.

The majority of the 11 main S&P sectors decreased, with technology and the energy sector leading the way as laggards. The sole exception was the defensive sector of utilities, which is frequently chosen during periods of economic instability. It increased by 0.7%.

The chances for future economic development were in the spotlight on Tuesday as a result of statements made by influential financial figures warning of impending uncertainty.

The CEO of Bank of America Corp. forecasted three-quarters of somewhat negative growth for the coming year, while Jamie Dimon, CEO of JPMorgan Chase & Co., warned that inflation would reduce consumer purchasing power and that a moderate to the more significant recession was likely to follow.

According to David Sadkin, president of Bel NSE 0.00% Air Investment Advisors, "the market is quite reacting right now."

He pointed out that although markets often predict the future, they are currently fluctuating up and down based on the most recent stories.

Fears about economic growth coincide with a reevaluation by traders of the direction that future interest rate hikes will take, in the wake of recent positive data on employment and the services sector.

According to Bel Air's Sadkin, "the market got ahead of itself at the end of November, but then we received some excellent economic statistics, so people are re-evaluating what the Fed will do next week."

The Nasdaq Composite sank 225.05 points, or 2%, to close at 11,014.89. The Dow Jones Industrial Average dropped 350.76 points, or 1.03%, to conclude at 33,596.34; the S&P 500 dropped 57.58 points, or 1.44%; and the finish line for the S&P 500 was 3,941.26.

Oil prices have also been impacted by uncertainty on the path of global development, with U.S. crude falling to levels last seen in January, before Russia's invasion of Ukraine disrupted supply markets. On Tuesday, the energy sector decreased 2.7%.

Banks are among the most susceptible equities to an economic downturn, since they possibly experience negative repercussions from bad loans or decreasing loan growth. To reach its lowest close since October 21, the S&P banking index fell 1.4%.

11.01 billion shares were traded on U.S. exchanges, which is in line with the average for the whole session for the previous 20 trading days.

The Nasdaq Composite recorded 52 new highs and 262 new lows, while the S&P 500 posted three new 52-week highs and nine new lows.

Adam Sarhan, CEO of 50 Park Investments, stated that "fundamentally, we are witnessing another round of large layoffs this week and that just raises the possibilities that we have a hard landing in 2023 and enter a longer recession than was previously projected."

In an interview on Tuesday, the CEO of JPMorgan Chase predicted that inflation will cause the country to enter a recession.

People may very likely see a minor or severe recession due to inflation and its effects on consumers, he warned.

The S&P is down 3.2% this week after Tuesday's losses, while the Nasdaq is down 3.9%.

When it meets next week, the Federal Reserve is widely anticipated to decrease its rate of rate hikes to a half-point rise. However, investors worry that a reduction in its clip won't be sufficient to prevent the economy from falling into a recession in 2023.