Stocks fall as investors’ recession expectation

Stocks retreated as recession expectations resurfaced on Wall Street, and investors eyed key inflation statistics later this week.

Dow Jones Industrial Average traded down 112 points, or 0.32% S&P 500 declined 0.72% Nasdaq Composite fell 1%

Tech stocks were lower, with Apple shares down 1.92% and Alphabet down 1.73%. Tesla shares fell 3.62% after the company said it would cut prices again on some electric cars.

As investors pick up on key signs of a weakening labor market, markets are coming off a tough week. Friday’s March jobs survey showed a steady economy and inflation, sending higher stock futures and Treasury yields.

Nonfarm payrolls advanced 237,000 in the month. The unemployment rate fell back to 3.5%, against expectations that it would not exceed 3.62% the previous month.

According to Glenmede’s chief investment officer of Private Wealth, the report is consistent with forecasts of a slow recession in the United States, which does not indicate a quick resolution of inflation problems.

Figures for another quarter of rate hikes in May should be higher as the data doesn’t justify a Fed stopped.

Investors expect a busy week with economic analysis, including the latest consumer price index statistics due on Wednesday.

Other movements in the markets

Shares of Micron Technology rose 6% after Samsung Electronics announced a cut in memory chip production. Many Wall Street economists say the move will provide the impetus to speed up the recovery of the memory chip industry.

Pioneer Natural Resources shares advanced 7%. Exxon shares retreated 0.6%. Tesla’s electric car stock retreated nearly 2%. Tesla has said it plans to cut car prices again. The shares of the First Republic retreated by 3%.

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