Disappointing economic data
Recession fears weigh on the Dow
04/05/2023, 00:55
New economic data make Wall Street traders more pessimistic about the coming months, the Dow is falling. Papers from US insurers, in particular, have lost their feathers. On the other hand, investors are taking action on the online marketplace Etsy.
Rekindled fears of a recession after the latest US economic data pushed Wall Street into the red on Tuesday. The Dow Jones Index the standard values closed 0.6 percent lower at 33,402 points. The tech-heavy one Nasdaq fell 0.5 percent to 12,126 points. The broad one S&P 500 lost 0.6 percent to 4100 points.
US industry once again posted a drop in orders in February. Orders fell 0.7 percent from the previous month. Economists polled by Reuters had expected a fall of just 0.5 percent, after a downwardly revised 2.1 percent drop in January. The job market data for February also showed a surprisingly sharp drop in new job openings. “The labor market started to lose momentum even before the banking crisis in March, and this creates a dangerous situation where tightening credit conditions could lead to actual layoffs in the coming months as companies try to get their costs under control ‘ said Christopher Rupkey, economist at trading house FWDBONDS.
Recession fears weighed on stocks from US insurers. Share certificates of companies like prudential, Travelers, Metlife and AmericanInternational lost up to 2.1 percent.
The announcement of bankruptcy proceedings depressed the shares of Virgin Orbit clearly in the red. The US-listed shares of the British satellite company fell by around 23 percent.
In contrast, the shares of the online marketplace specializing in arts and crafts were in demand Etsy, which gained 1.3 percent. Analysts at US investment bank Piper Sandler have upgraded the stock to “Overweight” after previously “Neutral”. According to the experts, Etsy is particularly well positioned to weather the current macroeconomic obstacles such as high inflation. The reason is its increasing popularity among the youngest generation of buyers.