As consumer confidence reaches a new low, the Dow plunges nearly 500 points and recession fears return
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| Dow plunges nearly 500 points and recession fears return |
Stocks finished lower after erasing earlier gains: the tech-heavy Nasdaq Composite fell 3%, the S&P 500 fell 2%, and the Dow Jones Industrial Average fell 1.6 percent, or more than 500 points.
Markets suffered following the release of the most recent Conference Board statistics, which showed a decline in consumer confidence of 98.7 from 103.2 in May.
The short-term economic outlook of consumers decreased from 73.7 last month to 66.4 in June, the lowest level since March 2013. The most recent economic data hurt retail stocks, with Home Depot, Lowe's, and Macy's all dropping by 4% or more.
Conversely, shares of Nike fell by 7% despite strong earnings that exceeded Wall Street expectations. Consumer and tech companies were the market's biggest decliners on Tuesday, while energy stocks, headed by Hess and Occidental Petroleum, were the only sector to post gains in the S&P 500.
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