Stocks close lower, major averages on pace for weekly declines as recession fears mount; European markets slide 1.8% as investors digest more interest rate hikes
Stocks on Thursday posted their third straight daily decline, as mounting fears that the Federal Reserve’s aggressive rate hikes will push the economy into a recession dented risk appetite for investors. The S&P 500 slid 0.8% to 3,757.99, while the Nasdaq Composite shed 1.4% to 11,066.81. The Dow Jones Industrial Average closed 107.10 points lower, or 0.3%, at 30,076.68.
Shares of Cano Health surged more than 40% in late afternoon trading following a Wall Street Journal report that Humana and other potential buyers are in talks to buy the primary-care provider.
The report, which cited sources familiar with the discussions, indicated that a deal could be reached in the weeks ahead.
Shares of FedEx rose 2.8% in afternoon trading, erasing earlier losses after the company announced its fiscal first-quarter results and detailed cost-cutting initiatives. The company, which had warned investors to expect a weak quarter earlier this month, said it planned to cut expenses by more than $2 billion during the current fiscal year.
FedEx also said it would repurchase $1.5 billion of its stock during the fiscal year and raise prices for customers on Jan. 2, 2023.
European stocks closed lower Thursday, as investors digested news from the U.S. Federal Reserve, Swiss central bank, and Bank of England as they opted to hike rates.
The pan-European Stoxx 600 closed down 1.8% with all sectors and major bourses in negative territory except banks and basic resources, which were flat.
Pan-European bank Unicredit leads the way with a 6.4% jump in shares after Chief Executive Andrea Orcel announced the bank would raise its guidance for the year during third-quarter results in October.
Shares of Deutsche Bank followed the trend with a 4.9% increase, after CFO James bon Moltke said the bank would approach 2023 “with caution” at a financial conference.
Source: CNBC, Investing.com