Stocks fell for a second day in a row on Tuesday as markets failed to build on last week’s strong rebound from 2022 lows, with investors once again selling off shares amid looming recession fears and new economic data showing that consumer confidence plunged to a 16-month low.
Stocks erased earlier gains and finished lower: The Dow Jones Industrial Average fell 1.6%, nearly 500 points, while the S&P 500 lost 2% and the tech-heavy Nasdaq Composite 3%.
Markets took a hit after the latest data from the Conference Board, with the consumer confidence index falling to a reading of 98.7, down from 103.2 in May and its lowest level since February 2021.
What’s more, consumers’ short-term outlook for the economy fell from 73.7 last month to 66.4 in June, marking the lowest reading in nearly a decade (since March 2013), according to the Conference Board.
Retail stocks took a hit from the latest economic data—with the likes of Home Depot, Lowe’s and Macy’s all falling by 4% or more, while shares of Nike lost 7% despite solid earnings that came in above Wall Street expectations.
Consumer and tech stocks led the market’s declines on Tuesday, while energy stocks were the only positive sector in the S&P 500, with the likes of Hess and Occidental Petroleum each rising by around 5%.
Casino stocks rallied, meanwhile, after China relaxed its Covid-19 restrictions for travelers entering the country by slashing quarantine times upon arrival by half: Shares of Wynn Resorts and Las Vegas Sands each jumped over 3%.