June 8 (UPI) — U.S. markets ended a two-day winning streak on Wednesday, closing in the red as investors weighed concerns about the economic slowdown.
The Dow Jones Industrial Average fell 269.24 points, or 0.81%, while the S&P 500 fell 1.08% and the Nasdaq Composite closed the day down 0.73%.
Wednesday’s decline came as the yield on 10-year Treasury bills back above 3%while the US oil benchmark, West Texas Intermediate crude, rose above $120 a barrel.
Investors were also pricing in the potential slowdown in the economy and a possible recession.
“Our main conclusion is that the forward-looking recession probabilities should look much more grim later this year as financial conditions tighten,” said Deutsch Bank Chief U.S. Economist Matthew Luzzetti.
Stocks also fell as companies continued to cut their quarterly profit forecasts.
U.S. shares of Credit Suisse fell 1.01% after issuing a profit warning, citing tighter monetary policy and the impacts of war in Ukraine, while Intel shares fell 5.28% while warning of weak demand for semiconductors.
Shares of Scotts Miracle-Gro also fell 8.73% amid trending retailers reduction in profit forecasts after collecting more inventory than consumers demanded.
Robinhood shares fell 3.9% after Securities and Exchange Commission Chairman Gary Gensler detailed a potential rule change regarding trade execution, including the ability to require orders to retail are routed to auction.
Conversely, shares of Roku gained 9.06% amid reports that Netflix could buy the company, while shares of Spotify rose 6.07% after its investor day.
Moderna stock also rose 2.19% after the company announced that its COVID-19 recall update did a better job of thwarting the Omicron variant than the original version.
Investors are still awaiting the release of the Consumer Price Index from the Bureau of Labor Statistics on Friday as well as the Federal Reserve’s policy-making meeting next week.