Wall Street falls amid strong fears of impending recession

Wall Street’s main indexes fell on Tuesday, while investors worried about the possibility of a recession, at a time when central banks around the world take aggressive measures to curb the advance of inflation.

U.S. stocks have been under relentless selling pressure this year, with the S&P 500 .SPX index suffering its steepest first-half percentage drop since 1970, as the Federal Reserve backs away from easy-money policy to raise interest rates. borrowing costs.

Investors are now awaiting the Fed’s June meeting minutes, due on Wednesday, as they brace for another 75 basis point interest rate hike later this month.

Traders are also watching the data and company comments for signs that inflation has peaked and the economy has cooled as regular trading kicked off after a long weekend and with the rainy season corporate results just a few weeks away.

“Concessions of a recession are dominating the market,” said Sam Stovall, strategist at CFRA. “The real question is if the economy is slowing, then how much will Q2 results or guidance disappoint?”

At 1508 GMT, the Dow Jones Industrial Average .DJI was down 695.98 points, or 2.26%, at 30,406.37; while the S&P 500 .SPX fell 72.04 points, or 1.89%, to 3,753.81 units; and the Nasdaq .IXIC index was down 89.11 points, or 0.78%, at 11,041.55.

Shares of Tesla Inc. TSLA.O fell 3.9% as the company’s electric vehicle deliveries fell in the second quarter from the previous quarter amid supply chain difficulties.

Shares of Warner Bros Discovery Inc WBD.O fell 3.6% after reports that the unit of streaming and media company, HBO Max, halted production of original shows in Europe.

Shares of mega-caps such as Amazon.com AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc. GOOGL.O – considered sensitive to interest rates – fell between 0.9% and 1.6%.

Data released on Tuesday showed new orders for U.S.-made goods rose more than expected in May, indicating demand for products remains strong even as the Fed seeks to cool the economy.

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