Stocks fall after more bad news about the US economy

Stocks slid on Friday, heading for a second straight weekly loss, as weaker news about the US economy accelerated a downward move.

At around 12:45 p.m. ET, the S&P 500 and Dow are down about 1.5%, while the Nasdaq is down 1.3%.

At the beginning of the session, the Nasdaq had moved into positive territory.

The latest fall in stock prices followed preliminary data on US economic activity this month from S&P Global, which showed a further deterioration in activity early in December.

S&P Global services PMI fell to a four-month low, while the manufacturing index hit a 31-month low in December.

“Business conditions are deteriorating towards the end of 2022, with a sharp decline in PMI suggesting fourth-quarter GDP will contract at an annualized rate of about 1.5%,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “Job growth has now slowed to a crawl as companies in both manufacturing and services are much more cautious about hiring given the collapse in customer demand.”

On Thursday, the November retail sales report was weaker-than-expected, raising concerns about the health of US consumers, which has been the engine of a better-than-expected economy this year.

After rebounding earlier this week, US stocks are back on track to post weekly losses again after last week’s S&P 500 suffered its worst weekly loss since late September.

Investors also had their eyes on Crude Oil early Friday, with WTI futures down over 3% to trade near $73.70 a barrel. Earlier this week, oil prices hit a new 2022 low.

Friday’s trading comes after Thursday’s sharp sell-off, which saw the Nasdaq fall more than 3% as Wednesday’s Federal Reserve rate hike was followed by corresponding moves by the Bank of England and the European Central Bank on Thursday morning.

Jerome Powell, Chairman of the Federal Reserve Board, leaves the Federal Reserve Building in Washington, U.S., December 14, 2022, after a news conference following the announcement that the Federal Reserve had hiked interest rates by half a percentage point, December 14, 2022. REUTERS/Evelyn Hockstein TPX -PICTURES OF THE DAY

Jerome Powell, Chairman of the Federal Reserve Board, leaves the Federal Reserve Building in Washington, U.S., December 14, 2022, after a news conference following the announcement that the Federal Reserve had hiked interest rates by half a percentage point, December 14, 2022. REUTERS/Evelyn Hockstein TPX -PICTURES OF THE DAY

On the earnings calendar, news is light with Darden Restaurants (DRI) and Winnebago Industries (WGO) both rising following their latest reports.

Crypto markets saw bitcoin (BTC-USD) and other major cryptocurrencies under selling pressure early Friday, with bitcoin falling below $17,000 in early trade. Earlier this week, bitcoin had surged above $18,000 for the first time since FTX collapsed in early November.

Accounting firm Mazars had suspended its work with Binance, and all other crypto firms weighed on the space early Friday.

For the latest stock market news and in-depth analysis, including events moving stocks, click here

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance App for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, flipboard, LinkedInand youtube

Leave a Reply

Your email address will not be published. Required fields are marked *