(CercleFinance.com) – The New York Stock Exchange closed lower on Friday, amid growing concerns about the United States entering recession: the Dow Jones lost more than 0.6% to 33,727 points, while the Nasdaq Composite dropped 1% to 13,492 points.
Markets continued to suffer from the prospect of further rate hikes from the Federal Reserve that could tip the US economy into recession, a scenario that prompted a steer clear of equities.
This renewed caution has also led investors to fall back on safe-haven assets such as US government bonds, thus causing the benchmark 10-year Treasuries rate to drop by six basis points, for example, to end at 3, 73%.
Fears for the health of the economy were fueled by the composite PMI, which fell to 53 as a flash estimate for June, reflecting an ongoing slowdown in US private sector expansion.
‘Manufacturers have reported a renewed contraction in their production, while service providers have observed a weaker, but still solid, increase in their production,’ said S&P Global, which published this index.
In the news of values, 3M managed to finish very slightly in the green (+0.3%), following an agreement reached by the conglomerate to settle disputes related to PFAS pollution, for a charge before tax of $10.3 billion.
Under Armor fell 2.8% as Wells Fargo downgraded its recommendation on the sporting goods supplier’s stock from ‘overweight’ to ‘online weight’, with a price target lowered from $12 to $8 .
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