Stock Market Today: Stocks Slip as Recession Worries Rise

Downbeat economic reports ramped up recession fears Tuesday, putting pressure on stocks throughout the session. While the major market indexes traded higher early on, they gradually headed lower over the course of the day as today’s data indicated the Fed’s efforts to slow the economy are working.   The Labor Department said this morning that the number of job openings declined to a seasonally adjusted 9.9 million in February from January’s downwardly revised 10.6 million.

This marked the first time job openings came in below 10 million since May 2021. Still, the latest figure sits close to the record 12 million job openings from February 2022 and far outnumbers the number of unemployed folks looking for work.

“The labor market is starting to loosen as the number of job openings declined in most sectors,” says Jeffrey Roach, chief economist for LPL Financial. “As the economy slows, firms will likely cut openings and workers will be less likely to quit in search of better hours and higher pay.” Roach adds that the Fed could consider pausing interest rate hikes at its May meeting, but only if this Friday’s jobs report “shows signs of material weakness,” and the next CPI report “reveals lower inflation.”

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.

Profit and prosper with the best of expert advice – straight to your e-mail. Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

In another sign that the Fed’s efforts to slow the economy are working, the Commerce Department said earlier that factory orders fell by a more-than-expected 0.7% in February. This was the third time in the last four months that orders for manufactured goods have declined. Meanwhile, oil prices continued to climb following this weekend’s surprise output cut announcement from the Organization of the Petroleum Exporting Countries and its allies (OPEC+). U.S. crude futures rose 0.4% to £80.71 per barrel – their highest close since Jan.

26. However, this boost in energy prices didn’t translate to upside for energy stocks. In fact, energy was one of the worst-performing sectors today, giving back 1.8%.

As for the major indexes, the Dow Jones Industrial Average fell 0.6% to 33,402, the S&P 500 shed 0.6% to 4,100, and the Nasdaq Composite closed down 0.5% at 12,126. As a reminder, it’s a short week for investors, with the stock market closed for Good Friday. 

Are regional bank stocks a buy?

Even if the U.S. does enter a recession later this year, “consumers would enter it in far better shape than during the great financial crisis,” said Jamie Dimon, CEO of JPMorgan Chase (JPM (opens in new tab)) said in his annual letter to shareholders (opens in new tab). The head of the big bank added that consumers are spending 7% to 9% more than they were last year and 23% more than they were before COVID.

Overall, Dimon said, the economy is “pretty good,” although he admitted there are “storm clouds ahead.”  Dimon also chimed in on the banking system following the recent failures of Silicon Valley Bank and Signature Bank. While the crisis “is nothing like 2008,” it still “provoked lots of jitters in the market,” Dimon said. 

Indeed, the SPDR S&P Regional Banking ETF (KRE (opens in new tab)) is down more than 30% since the start of March. Does this make beaten-down regional bank stocks a buy? Not so fast, say analysts.

Yes, there may be plenty of cheap stocks to choose from, but it might be too soon to go bargain hunting.

Explore More

Tags:

aldi listed on couponmatrix.ukbanner-buzz listed on couponmatrix.ukmarwell-zoo listed on couponmatrix.ukrunderwear listed on couponmatrix.ukswoon-editions listed on couponmatrix.uktravis-perkins listed on couponmatrix.uk
aldi listed on couponmatrix.ukAldi first rose to prominence in the UK when Credit Crunch-strapped consumers started trying to reduce their weekly outgoings - but millions quickly realised that shopping at Aldi meant they could save without compromising on quality and have remained loyal ever since. Our Aldi vouchers push prices even lower to almost unthinkably low levels, and with housewares and garden supplies on offer as well as food you’ll find yourself returning again and again once you’ve given them a try.
banner-buzz listed on couponmatrix.ukBannerBuzz is a leading provider of custom banners, signs and other marketing materials. They offer a wide range of products and services to help businesses promote their brand and reach their target audience. Ranging from table covers to custom flags and posters, you can find everything you need to make your business flourish at BannerBuzz. You can also use a trusty BannerBuzz discount code to save on your next purchase!
marwell-zoo listed on couponmatrix.ukFurry friends big and small await your arrival at Marwell Zoo, the charity-funded attraction that hosts the exotic animals of Africa and beyond for your satisfaction. Whether you want to have a family picnic on the 100+ acres of land or set your eyes on your first gazelle, we at Groupon have a Marwell Zoo discount that’ll cut the cost of your day away with family or friends.
runderwear listed on couponmatrix.ukWelcome to Runderwear, the home of high performance underwear for runners. We believe that everyone deserves to feel comfortable and supported while they're out on the road or trail, so we've got a range of options to suit every need. And, to help you save on your purchase, we've gathered all the best Runderwear discount codes in one place. Whether you're looking for a new pair of briefs or a sports bra that will keep you feeling supported throughout your run, we've got you covered. At Groupon, we believe that everyone deserves to save on their purchase - no matter what they're buying. That's why we've gathered all the best Runderwear offers in one place, so you can easily find a code that will help you save on some snug new undies. Plus, our team is always on the lookout for new Runderwear sales and seasonal promotions, so you can be sure that you're getting the best possible price. Ladies, if you're looking for great chest support when exercising, we've got just the thing. The Runderwear running bras is designed to offer maximum stability, so you can focus on your run - not on your discomfort. Plus, with a Runderwear voucher code, you can enjoy savings on your newest running must-have. Be you the occasional jogger or a regular runner, trust Runderwear to keep comfort at the forefront so you can focus on going the distance.
swoon-editions listed on couponmatrix.ukIf you adore all things beautiful, then you’ll be head over heels for Swoon Edition. Designers of thoughtful furnishings and heartwarming home accessories, Swoon Editions handpicks everything you need to transform your space into a sanctuary. Bring home a unique treasure with a Swoon Editions discount code and revive your rooms for less. Passionate about superior design, Swoon Edition works hard to fuel every vintage addiction with regal sofas, retro nightstands and the softest throws and fabrics.
travis-perkins listed on couponmatrix.ukWhen you’ve got a job that needs done, you don’t want to spend hours searching for the best price on the products you need, and luckily you can head straight to Travis Perkins knowing you’re always accessing incredible value for money. Chuck a Travis Perkins discount code into the mix and you’ll be saving yourself even more. From aggregate to angle grinders, you’ll find what you need at a great price with Travis Perkins.