Dow Jones concludes the worst quarter since 2020
On Thursday Dow Jones concludes the second quarter of the year with an enormous quarterly loss for two years. It happened because the latest economic data has increased the fear of recession in the consumers when Fed is recklessly determined to bring down inflation.
The S&P 500 dropped 0.8% posting its largest loss of first-half since 1970. The Nasdaq fell 1.3% and The Dow Jones Industrial Average has dropped 0.80% or 249 points, going through the worst quarter since Q1 2020.
Due to OPEC+ including Russia would not leave the previously announced plan of oil production and also resisted to increase the oil production, the whole energy sector led the market under pressure.
After a two-day meeting, OPEC+ announced to increase in the monthly overall production of oil for August to 648,000 barrels per day. The decision is unchanged from the last agreement earlier this month.
Tech stocks recovered some losses but the overall market showed weakness even though Treasury yields also dropped as well after feeling that economic growth has slowed.
A drop of 3% has been seen in the 10-year Treasury yield when data shows consumer spending is weak.
Consumer spending rose by 0.2% in the month of May while it was predicted for a 0.4% increase and April’s number was revised down to 0.6% from 0.9% previously.
The Stifel-an American investment bank said consumer is near to 70% of the economy and if they are not spending there is less hope the U.S. can avoid a near-term downturn.
Actually, it seems due to growing fears of recession, Dow Jones concludes the worst quarter since 2020.