Stock Market Today: Weak Data Weigh on Stocks

A twin bill of bearish reports only added to worries about the wisdom of the Fed hiking rates even as recession remains a possibility.

stock market today
(Image credit: Getty Images)

Markets closed mixed Tuesday after a choppy session driven by downbeat economic data and mounting anxiety over the Federal Reserve's determination to stamp out inflation.

On the economic front, a weak reading on new business activity and lower-than-expected new home sales weighed on sentiment even before the opening bell. The S&P Global Flash Composite Purchasing Managers Output Index fell 2.7 points to 45 in August. That's the weakest reading since May 2020, and indicates contraction in demand for both the manufacturing and services sectors of the economy. Meanwhile, the Commerce Department said sales of new single-family homes fell 12.6% to an annualized 511,000 in July, well short of economists' forecasts.

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Dan Burrows
Senior Investing Writer,

Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.