S&P 500 posts worst day in more than a month, Dow closes 600 points lower
The Dow Jones Industrial average tumbled more than 600 points on Wednesday as investors took profits on some of the strong 2023 January gains and as a disappointing December retail sales reading raised concerns about a recession. Shares of banks led the losses.
The Dow Jones Industrial Average fell 613.89 points, or 1.81%, to 33,296.96. The S&P 500 lost 1.56% to close at 3,928.86, its lowest level since Dec. 15. The Nasdaq Composite slid 1.24% to end the day at 10,957.01, snapping a seven-day win streak.
Microsoft announced plans to lay off about 10,000 employees, which hurt investor sentiment. The stock fell and dragged the Dow lower with it.
In economic data, investors digested the latest retail sales numbers, which showed a drop of 1.1% in December, slightly more than the 1% forecast.
They also weighed the latest reading on the producer price index, which measures input costs from companies. The PPI showed a 0.5% decline for December. Economists surveyed by Dow Jones expected a 0.1% decline. That briefly gave relief to investors who have hoped for inflation to retreat and for the Federal Reserve to slow its rate-hiking campaign.
The pan-European Stoxx600 index closed 0.2% higher provisionally, with basic resources climbing 2.3% to lead gains while food and beverage stocks fell 1.4%.
Compatriot semiconductor firm ASMI climbed more than 8% after beating fourth-quarter earnings expectations on the back of improved supply chain conditions.
Source: CNBC, Investing.com