June 8 (UPI) — U.S. markets snapped a two-day winning streak on Wednesday, closing in the red as investors weighed concern over economic slowdown.
The Dow Jones Industrial Average fell 269.24 points, or 0.81%, while the S&P 500 dropped 1.08% and the Nasdaq Composite closed the day down 0.73%.
Wednesday’s decline came as the 10-year treasury yield climbed back above 3%, while the U.S. oil benchmark, West Texas Intermediate crude, rose above $120 per barrel.
Investors were also weighing the potential slowing of the economy and a possible recession.
“Our main conclusion is that forward-looking recession probabilities are likely to look far more sinister later this year as financial conditions tighten,” Deutsch Bank chief U.S. economist Matthew Luzzetti said.
Stocks also declined as companies continued to slash quarterly profit forecasts.
U.S. shares of Credit Suisse fell 1.01% after it issued a profit warning, citing tighter monetary policy and impacts from the war in Ukraine, while Intel stock dropped 5.28% while warning of weak demand for semiconductors.
Shares of Scotts Miracle-Gro also declined 8.73% amid a trend of retailers cutting profit guidance after gathering more inventory than consumers were demanding.
Robinhood stock fell 3.9% after Securities and Exchange Commission Chair Gary Gensler detailed a potential rule change surrounding trade execution, including potentially requiring retail orders to be routed into auctions.
Conversely, shares of Roku gained 9.06% amid reports that Netflix could purchase the company, while Spotify stock rose 6.07% after its investor day.
Moderna stock also rose 2.19% after the company announced its updated COVID-19 booster shot does a better job at thwarting the Omicron variant than the original version does.
Investors are still awaiting the release of the Bureau of Labor Statistics’ Consumer Price Index on Friday as well as the Federal Reserve’s policy-setting meeting next week.