June 28 (UPI) — U.S. markets declined for the second consecutive day Tuesday amid disappointing economic data.
The Dow Jones Industrial Average closed the day down 491.27 points, or 1.56%, while the S&P 500 fell 2.01% and the Nasdaq Deposit declined 2.98%.
Markets gave up gains from earlier in the day with the Dow climbing as much as 446.83 points, or 1.4% while the S&P 500 rose as much as 1.2% and the Nasdaq gained 1%.
The major indexes gave up gains after the Conference Board released its consumer confidence index, which showed a reading of 98.7, down from 103.2 in May and below the Dow Jones estimate of 100, amid fears of a recession.
“Right now we are at an inflection point in the economy, where actual spending and economic activity is still positive, however, consumer confidence and financial conditions (especially interest rates) are indicating a slowdown ahead,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, told CNBC. “If we are able to avoid a recession then the stock market is fairly valued, however, if we do go into recession then we would expect the lows for the year haven’t been hit yet.”
Retail stocks declined after the consumer confidence data was released with Bath & Body Works falling 5.78%, Lowe’s declining 5.15%, Home Depot dropping 4.44% and Macy’s sliding 4.06%.
Shares of Nike also fell 6.98% after reporting a disappointing full-year outlook while sales in Greater China fell by 20% in its last quarter.
Chip stocks also fell Tuesday with Advanced Micro Devices dropping 6.24% and Nvidia falling 5.26%.
