Nearly everything on Wall Street continues to tumble today as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world, according to the Associated Press. The S&P 500 was down by 2.1% in midday trading; the Dow Jones Industrial Average was reeling by 763 points, or 1.9%; and the Nasdaq composite slid 2.4%.
Even gold, which has a reputation for offering safety during tumultuous times, slipped 1%.
The yield on the two-year Treasury, which closely tracks expectations for the U.S. Federal Reserve, briefly sank below 3.70% during the morning from 3.88% late Friday and from 5% in April. It later recovered and pulled back to 3.93%.
The U.S. economy is still growing, and a recession is far from a certainty. The Fed has been clear about the tightrope it began walking when it started hiking rates sharply in March 2022: Being too aggressive would choke the economy, but going too soft would give inflation more oxygen and hurt everyone.
U.S. stocks pared their losses today after a report said growth for U.S. services businesses was a touch stronger than expected. Growth was led by businesses in the arts, entertainment, and recreation businesses, along with accommodations and food services, according to the Institute for Supply Management.
However, turmoil in Big Tech continues. Apple fell 3.7% today after Warren Buffett’s Berkshire Hathaway disclosed that it had slashed its ownership stake in the iPhone maker. Nvidia, the chip company that’s become the poster child of Wall Street’s AI bonanza, fell even more, 6%.
