US stocks slip from record heights as recession fears offset rate-cut optimism

• US stocks slipped on Wednesday as traders mulled the risk of recession in 2024.
• Those fears have cooled extreme bullishness among investors.

US stocks slipped Wednesday as traders mulled Fed rate cut risks into next year and the outlook for a US recession.

The Dow Jones Industrial Average retreated from record highs after nine straight gains. The S&P 500 also pulled back after nearing its all-time high.

Markets have grown concerned about implications of the Fed's expected rate cuts next year. Lower rates could indicate a slowing economy, or one that may be already on the path to recession.

The New York Fed is pricing in a 51% chance a recession will arrive by November 2024. Meanwhile, markets are pricing in a 71% chance the Fed could slash interest rates 150 basis points or more by the end of next year.

Here's where US indexes stood as the market opened at 9:30 a.m. on Wednesday:

• S&P 500: 4,760.06, down 0.17%

• Dow Jones Industrial Average: 37,466.13, down 0.24% (91.79 points)

• Nasdaq Composite: 14,992.73, down 0.07%

Here's what else is going on:

• The Fed is bad at communicating and it's confusing people, according to top economist Mohamed El-Erian.
• The "everything bubble" spanning stocks, crypto, and housing is bound for a spectacular burst in 2024, one market historian warned.
• Investors haven't been this bullish on stocks since the start of 2022, Bank of America said.

In commodities, bonds, and crypto:

• Oil prices climbed, with West Texas Intermediate 1.45% to $75.02 a barrel. Brent crude, the international benchmark, surged 1.31% to $80.27 a barrel.
• Gold ticked lower 0.03% to $2,039.65 per ounce.
• The 10-year yield fell 3 basis points to hover at 3.892%.
• Bitcoin rose 2.66% to $43,686.