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New York stock market opens lower on rising recession concerns

The New York stock market started the day with a decline due to the increasing recession concerns. Following the “hawk” statements of the US Federal Reserve (Fed) officials, a negative course was observed in the stock markets at the opening of the new day, with the expectation that the tightening in monetary policy would continue and recession concerns.

At the opening, the Dow Jones index depreciated by about 125 points and decreased by 0.38 percent to 33,171.35 points.

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The S&P 500 index fell 0.43 percent to 3,911.84 points, and the Nasdaq index fell 1.24 percent to 10,957.01 points.

Following the “hawk” statements of the Fed officials, a negative course was observed in the stock markets at the opening of the new day, with the expectation that the tightening in monetary policy would continue and the recession concerns.

Although Philadelphia Fed Manufacturing Index increased by 4.8 points compared to last month to minus 8.9 in January, it pointed out that the contraction in the sector continues.

Housing starts in the country fell below market expectations and fell 1.4 percent in December last year. Housing starts, which carried the decline to the fourth month, became 1 million 382 thousand. Construction permits in the USA, which fell to the lowest level in 2.5 years, decreased by 1.6 percent on a monthly basis in December 2022 and fell to 1 million 330 thousand.

 

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While the number of first-time jobless applicants in the US dropped to 190 thousand in the week ending January 14, recording a 4-month low, data showed that the tight labor market continued.

While the statements of Fed officials continue to be followed by investors, Boston Fed President Susan Collins stated that the risks are now more balanced and argued that it is appropriate to reduce the rate of interest rate hikes.

On the other hand, while the developments regarding the threat of the federal government to reach the debt limit of 31.4 trillion dollars in the USA are followed, the US Treasury Department is expected to take extraordinary measures.

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