Stock Market Today: Dow Dives 764 Points as Recession Fears Ramp Up
The major market indexes suffered their biggest one-day drop since September following the latest economic data.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
It was an ugly day for stocks as the major market indexes extended yesterday's Fed-induced slump into a second straight day.
Today's selling was sparked by the latest batch of economic data, which exacerbated recession fears across Wall Street. Retail sales and manufacturing data released early Thursday showed that the Federal Reserve's aggressive campaign of interest rate hikes are indeed cooling both the U.S. economy and inflation. And yet Fed Chair Jerome Powell warned Wednesday that rates could stay higher for longer until tightness in the labor market starts to ease.
One economic data point that didn't come to pass today was any sign of cooling in the jobs market. Indeed, the Labor Department said earlier that weekly jobless claims fell by 20,000 last week to a seasonally adjusted 211,000.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Progress on slowing the economy was seen elsewhere, however, with data from the Commerce Department showing that retail sales fell 0.6% month-over-month in November – the weakest reading since December 2021. Additionally, data from the Fed showed manufacturing activity in both New York state and the Philadelphia region declined by more than expected.
"The labor market might not be breaking but it is becoming clear the consumer is weakening and manufacturing activity is in a recession," says Edward Moya, senior market strategist at currency data provider OANDA. "Labor market weakness will be more noticeable next year and that should help reduce some of the constant wage pressures we are still seeing."
Today's selling was widespread, with the rate-sensitive communication services (-3.9%) and technology (-3.7%) sectors bearing the brunt of the losses. As for the major indexes, the tech-heavy Nasdaq Composite slumped 3.2% to 10,810, the broader S&P 500 Index fell 2.5% to 3,895, and the blue-chip Dow Jones Industrial Average dropped 2.3% to 33,202. It was the largest one-day drop for all three indexes since September.
Is Growth Poised for a Comeback?
We're close to the end of what has been a truly unforgiving year for investors. After all, the S&P 500 is on track for its worst annual loss since 2008. Should investors expect more of the same in 2023? It depends on whom you ask.
Wells Fargo analysts Chris Harvey and Michael Turrin expect 2023 to be "a back-and-forth year." Yes, they anticipate "double-digit sell-offs driven by the Fed and economic concerns," but, "ultimately, we see equities ending higher as the inflation fever breaks, the economy enters a malaise (not a sharp recession) and interest rates plateau." The duo add that the environment is supportive of growth, particularly at the mid-cap level, which is where they believe investors can find the best growth stocks.
Although there are plenty of opportunities to be found in growth-oriented investments, investors who want to spread the risk around may want to consider these best growth ETFs for 2023. The names featured here offer broad exposure to higher-risk, higher-reward stocks across a range of strategies.
-
The Cost of Leaving Your Money in a Low-Rate AccountWhy parking your cash in low-yield accounts could be costing you, and smarter alternatives that preserve liquidity while boosting returns.
-
I want to sell our beach house to retire now, but my wife wants to keep it.I want to sell the $610K vacation home and retire now, but my wife envisions a beach retirement in 8 years. We asked financial advisers to weigh in.
-
How to Add a Pet Trust to Your Estate PlanAdding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Nasdaq Slides 1.4% on Big Tech Questions: Stock Market TodayPalantir Technologies proves at least one publicly traded company can spend a lot of money on AI and make a lot of money on AI.
-
Fed Vibes Lift Stocks, Dow Up 515 Points: Stock Market TodayIncoming economic data, including the January jobs report, has been delayed again by another federal government shutdown.
-
Stocks Close Down as Gold, Silver Spiral: Stock Market TodayA "long-overdue correction" temporarily halted a massive rally in gold and silver, while the Dow took a hit from negative reactions to blue-chip earnings.
-
The New Fed Chair Was Announced: What You Need to KnowPresident Donald Trump announced Kevin Warsh as his selection for the next chair of the Federal Reserve, who will replace Jerome Powell.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
Nasdaq Drops 172 Points on MSFT AI Spend: Stock Market TodayMicrosoft, Meta Platforms and a mid-cap energy stock have a lot to say about the state of the AI revolution today.
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market TodayInvestors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
