NEW YORK: Wall Street stocks dipped early Thursday, adding to the prior session’s pullback as investors weighed recession worries and uncertainty over US debt discussions in Washington.
The early losses came on top of the more than one percent drop in major indices Wednesday, as weaker retail sales data underscored the risk of a downturn in the world’s biggest economy.
Wall Street reverses gains on hawkish Fed comments
“Equity futures indicate a lower open for the stock market, carrying over yesterday’s downside momentum,” said Briefing.com. “Recession and Fed rate hike fears continue to plague investors after the latest slate of economic data.”
About 10 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 33,170.67.
The broad-based S&P 500 shed 0.4 percent to 3,913.24, while the tech-rich Nasdaq Composite Index declined 0.4 percent to 10,913.85.
Adding to the anxiety has been uncertainty over the US budget, with far-right Republicans in Congress demanding budget cuts from US President Joe Biden.
Treasury Secretary Janet Yellen has said that the government will effectively hit its $31.4 trillion borrowing limit on Thursday, at which point she will use accounting maneuvers to stave off default temporarily.
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