Dow falls 500 points as worries grow over slowing economic growth

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Stocks slide Tuesday following the Independence Day weekend, amplifying the losses of Wall Street’s dismal first half of the year amid growing concerns over sluggish economic growth in the months ahead.

The Dow Jones Industrial tumbled more than 500 points or 1.7 percent in morning trading. The S&P 500 index fell by 70 points or 1.8 percent at the start of the session, while the tech heavy-Nasdaq lost 190 points or 1.7 percent.

Investors are heading into the back-half of 2022 after the stock market closed out its worst six-month stretch to start a year since 1970, as consumers and businesses adapt to historically high inflation and to the global supply chain disruptions unleashed by the Russian invasion of Ukraine and the pandemic.

Stocks slide, with Wall Street closing out its worst first half since 1970

More than $8 trillion has been wiped out of the stock market this year.

One of the key economic signals market observers will be watching this week will be the performance of corporate earnings. Eighteen companies in the S&P will release quarterly reports in the days ahead, providing crucial data into how businesses are coping with rising prices and hiked up interest rates.

The Federal Reserve has raised its benchmark interest rate three times this year and reported that four more increases are on deck. The most recent hike, which was announced last month, came in at three-quarters of a percentage point, the Fed’s largest since 1994.

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