US stocks fall as the S&P 500 is about to close out its worst first half in 52 years
- US stocks dropped Thursday as investors took in new consumer spending data.
- The S&P 500 is on pace for its worst first half to a year since 1970.
US stocks declined Thursday with the S&P 500 on track for its worst first half of a year since 1970.
Investors digested new readings on consumer spending, as Thursday data showed US household spending growth slowed last month as Americans struggled to keep up with price increases.
Both the S&P 500 and the Dow Jones Industrial Average are moving toward their worst three-month stretches since the start of the pandemic. Tech stocks have also cratered, with the Nasdaq down more than 20% — its worst stretch since 2008.
Soaring inflation, Fed rate hikes, war in Ukraine, and the lingering effects of the global pandemic have all put pressure on markets, and top commentators have been sounding the alarm on a coming global recession.
Here's where US indexes stood as the market opened 9:30 a.m. on Thursday:
- S&P 500: 3,778.38, down 1.06%
- Dow Jones Industrial Average: 30,695.45, down 1.08% (333 points)
- Nasdaq Composite: 11,057.38, down 1.1%
Tough talk from Fed Chair Jerome Powell and other central bankers Wednesday renewed recession concerns among investors. At the European Central Bank Conference in Portugal, Powell said there's "no guarantee" the US can avoid a sharp slowdown amid rate hikes meant to combat inflation.
"The process is highly likely to involve some pain, but the worse pain would be in failing to address this high inflation and allowing it to become persistent," Powell said.
Traders now expect the Federal Reserve to cut interest rates by 50 basis points in 2023 as economic growth slows sharply.
Meanwhile, Warren Buffett's Berkshire Hathaway has made nearly 40 times its money on the Chinese EV stock, BYD, after placing a $232 million bet in 2008. Today, it's now worth over $9 billion.
In crypto, the risk asset sell-off and liquidation of the hedge fund Three Arrows Capital dragged bitcoin briefly below $19,000 on Thursday.
Crypto exchange CoinFlex said it needs more time to restart withdrawals as it scrambles to fix a $47 million bad debt it says is tied to an underwater account belonging to investor Roger Ver, aka "bitcoin Jesus".
Meanwhile, a top Indian firm paid for Russian coal in yuan, and traders told Reuters that more companies could turn to China's currency for deals with Russia.
Oil inched lower, with West Texas Intermediate down 0.66% to $109.01 a barrel. Brent crude, the international benchmark, moved lower 0.50% to $115.68 a barrel.
Gold edged higher 0.269% to 1,822.50 per ounce. The 10-year yield rose 7.1 basis points to 3.022%.
Bitcoin fell 4.68% to $19.189.29.