US: Stocks end mostly down amid growing recession fears
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WALL Street stocks finished a volatile session mostly lower on Tuesday (Oct 11) following a downcast IMF economic forecast, as investors gird for a difficult earnings season.
The International Monetary Fund projected 2023 growth of 2.7 per cent, 0.2 points down from July expectations in light of rising inflation, toughening actions from central banks and uncertainty after the Russian invasion of Ukraine.
Despite the forecast, major indices pushed into positive territory in the afternoon but weakened again following comments by Bank of England governor Andrew Bailey that the central bank would end emergency bond-buying efforts on Friday, rebuffing calls for a longer programme to allow markets to stabilise.
The Dow Jones Industrial eked out a 0.1 per cent gain to 29,239.19.
The broad-based S&P 500 fell for a fifth straight session, losing 0.6 per cent at 3,588.84, while the tech-rich Nasdaq Composite Index slid 1.1 per cent to 13,608.09.
The forecast comes ahead of critical US inflation data and third-quarter earnings season, which investors fear may reveal the growing risk of a recession.
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“The macro backdrop keeps getting uglier given the latest escalation with the war in Ukraine and growing fears that stagflation might force central bankers globally (to) remain aggressive with tightening and that will trigger severe recessions,” said Oanda’s Edward Moya. AFP
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