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Wall Street started the second half with losses due to slowdown concerns

Wall Street started the second half with losses due to slowdown concerns
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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 30, 2022. REUTERS / Brendan McDermid / Files

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  • US manufacturing activity slowed more than expected in June
  • Kohl’s fall after he stopped selling to franchise groups
  • Micron’s low forecast fuel sales in the chip sector stopped
  • Down index: Dow 0.40%, S&P 0.38%, Nasdaq 0.51%

July 1 (Reuters) – Wall Street began the second half of the year in a dull note on Friday as investors worried about the risk of economic growth from the Federal Reserve’s decision to curb rising prices at any cost.

As the US Federal Reserve moves away from easy money by raising borrowing costs, investors have been selling equities for most of the year, pushing the benchmark S&P 500 to close at its worst first six months since 1970 on Thursday.

“People are expecting our second half to be good but the evidence is going to be in numbers and the first thing they’re going to see is how bad the earnings are going to be,” said Themis Trading, co-manager of Joe Saluji Trading.

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Further evidence was found on Friday that rising interest rates are hurting demand in the world’s largest economy. The data shows that for the first time in two years a measure of new orders has shrunk and manufacturing activity in June has been slower than expected. Read more

Despite signs of a slowdown in growth, Fed policymakers are suing for a second 75-basis point interest rate hike in July, raising concerns among investors about the potential hurt of the company’s profits in the upcoming quarterly reporting season.

“The real question on the minds of investors is if we’re getting slower economic data, will that necessarily translate into some Q2 earnings reports?” Said Chad Oviet, director of investment management at Huntington Private Bank.

Markets were volatile in the first half as large interest rate hikes, geopolitical uncertainty, prolonged supply-chain snarls and fears of a lockdown in China weighed on sentiment.

In the previous session, all three indices posted their second consecutive quarterly decline. The Dow (.DJI) Its first half percent has suffered its biggest decline since 1962 and the technology-heavy Nasdaq (.IXIC) Its worst record in the first six months.

Shares of market leaders such as Amazon.com Inc (AMZN.O) And Tesla Inc. (TSLA.O)Higher on Friday, the S&P 500 and Nasdaq gave the biggest boost.

12:09 pm ET, Dow Jones Industrial Average (.DJI) The S&P 500 was down 124.63 points, or 0.40%, at 30,650.80 (.SPX) Was down 14.30 points or 0.38% at 3,771.08 and the Nasdaq Composite (.IXIC) Was down 56.61 points or 0.51% at 10,972.13.

Trading volume could be a light headline on a long weekend as the market is closed on Monday for the July 4 holiday.

Micron Technology Inc. (MU.O) As the memory-chip firm forecast quarterly earnings higher than market expectations, the chip sector turned to a downward cycle, raising concerns. Read more

Extensive Philadelphia SE Semiconductor Index (.SOX) Decreased by 4.8%.

Facebook is owned by Meta Platforms Inc. (META.O) 3.2% slipped. The company has cut plans to hire at least 30% of engineers this year, CEO Mark Zuckerberg told staff, warning them of a deeper economic downturn. Read more

Kohls Corporation (KSS.N) Department store chain sales close to vitamin shop-owner franchise group down 20.2% (FRG.O). Read more

Progress issues have outperformed decliners on the NYSE by a 1.02-to-1 ratio. Reducing the number of progressives for the 1.13-to-1 ratio on the Nasdaq has overcome the problems.

The S&P index hit a new 52-week high and 48 new lows, while Nasdaq hit eight new highs and 183 new lows.

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Reporting by Amruta Khandekar and Shruti Shankar in Bangalore; Edited by Arun Kair

Our value: Thomson Reuters Trust Policy.

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