NEW YORK - Wall Street stocks tumbled again on Tuesday as leading bank executives expressed worries about a possible recession, adding to investor unease.
JPMorgan Chase chief executive Jamie Dimon reiterated that he saw the chance for a “mild to hard recession” next year in an interview with CNBC, while Goldman Sachs chief David Solomon offered a similar appraisal in a public appearance.
“The data looks increasingly like 2023 is going to include a recession,” said Merk Investment’s Nick Reece. “I don’t think a recession has been... adequately priced into the markets.”
The Dow Jones Industrial Average finished down 1 per cent at 33,596.34.
The broad-based S&P 500 shed 1.4 per cent to 3,941.26, while the tech-rich Nasdaq Composite Index dropped 2 per cent to 11,014.89.
Monday’s losses added to the toll this week after major indices also fell more than 1 per cent on worries that a recent batch of solid US economic data will prolong the Federal Reserve’s aggressive policies to counter inflation.
Large technology companies were especially weak, with Apple, Amazon and Google parent Alphabet all losing more than two percent.
Facebook parent Meta suffered an even bigger drop of nearly seven percent after the European Data Protection Supervisor said it would take action against the company over its use of personal data for targeted advertising.
EDPS did not give details or recommend fines, but critics have accused the social media giant of flouting intended to protect consumer data. AFP