Wall Street stocks slide on renewed recession worries

Jan 19 (Reuters) – U.S. stocks traded lower on Thursday as recession worries resurfaced during the quarterly reporting period.

The Dow Jones index fell 0.62% to 33.090.07 points by 19:12 Moscow time, the S&P 500 fell 0.73% to 3.900.23 points, and the Nasdaq fell 0.88% to 10.860.54 points.

Microsoft Corp and Amazon.com Inc have previously announced plans to cut thousands of jobs amid the difficult economic situation. Shares of both tech giants put the most pressure on the S&P 500 on Thursday, shedding 1.67% and 1.76%, respectively.

Among the leaders of the decline were the indices of retail trade and non-essential consumer goods, which fell by 1.1% and 0.9%, respectively.

Shares of American Express Co pushed the Dow down 2.7%.

Procter & Gamble Co added 0.3% after the company said production costs weighed on earnings despite improved full-year sales guidance.

Statistics today showed that the number of homes started in the US in December fell by 1.4% to 1.382 million. In addition, the number of applications for unemployment benefits in the US fell to 190,000, while analysts had forecast a figure of 214,000. The Philadelphia Fed Business Climate Index was minus 8.9 in January compared to a revised value of minus 13.7 a month earlier.

Among the last representatives of the Fed, who supported the idea of ​​raising interest rates above 5%, was the head of the Boston Fed, Susan Collins. Earlier this scenario was supported, among others, by the heads of the St. Louis and Cleveland Feds, James Bullard and Loretta Mester.

Money market participants are pricing in a 25 basis point rate hike at the upcoming regulator’s meeting, with rates expected to peak at 4.89% in June.

Netflix Inc is expected to report its most modest quarterly revenue growth later on Thursday. The company’s shares fell 1.5%.

The original message in English is available at the code: (Amruta Khandekar, Shreyashi Sanyal and Shubham Batra in Bangalore)


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