U.S. equities fell for a second consecutive day Tuesday after weak consumer confidence data weighed on sentiment.
All three of the major averages suffered deep cuts Tuesday, following more modest losses Monday. The Nasdaq Composite was the laggard.
Stocks started the day in the green but reversed after The Conference Board reported a decline in consumer confidence for the month of May that missed estimates, amid increased recession fears, surging inflation and aggressive rate hikes by the Federal Reserve. |
“Consumers are obviously influenced by the significant increase in food and energy prices over the past few months with little hope for significant improvement over the summer,” said Brian Price, head of investment management for Commonwealth Financial Network “I would have to imagine that falling equity and fixed income prices this year have also dampened the moods of consumers as there is some more belt tightening going on as portfolio values have declined.”
The economic data put pressure on retail stocks. Lowe’s fell 5.2%, while Home Depot and Macy’s both fell more than 4%. The SPDR S&P Retail ETF fell 3.7%.
Elsewhere, casino stocks got a lift after China eased quarantine rules for inbound travelers. Wynn Resorts and Las Vegas Sands closed the day up 3.2% and 4%, respectively. Other stocks that rose on the news, including Disney and U.S. airlines, turned lower. |
