US open: Stocks sharply lower amid recession fears

(Sharecast News) - Wall Street stocks were firmly in the red early on Monday amid fears that a potential US recession may be on the horizon. As of 1530 BST, the Dow Jones Industrial Average was down 2.24% at 38,845.54, while the S&P 500 lost 2.79% to 5,197.35 and the Nasdaq Composite came out the gate 3.51% weaker at 16,187.90.

The Dow opened 891.72 points lower on Monday, more than doubling losses recorded in the previous session as market participants began to grow concerned that the Federal Reserve Bank may be moving too slow when it comes to interest rate cuts if it wants to avoid a recession.

Stocks tanked globally on Friday, while Japan's Nikkei 225 closed more than 12% lower on Monday in its worst daily showing since 1987's Black Monday crash on Wall Street.

Recessionary fears were the main reason for losses following worse-than-expected July nonfarm payrolls numbers from the Labor Department that fuelled fears that US central bank was behind the eightball when it comes to cutting interest rates to bolster an economic slowdown just a week after opting to keep its benchmark rate at the highest levels seen in 20 years.

The yield on the benchmark ten-year Treasury note was down early on Friday and sitting at 3.676% - on track for its lowest close in more than a year.

Tech losses were also in focus as Nvidia, Apple, Tesla and Broadcom were all sharply lower amid an ongoing rotation out of the sector. Elsewhere in the corporate space, BioNTech fell short of earnings expectations amid a slide in Covid vaccine sales, while Carlyle Group also posted an unexpected quarterly earnings drop.

On the macro front, S&P Global's composite PMI was revised lower to 54.3 in July, down from a preliminary reading of 55 and June's 54.8 print, while its services PMI was downwardly revised to 55 from a preliminary reading of 56, up from the prior month's 55.3 print.

On another note, the Institute for Supply Management's services rose to 51.4 in July, up from the four-yearly low of 48.8 seen in June and above market expectations for a reading of 51.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dowdupont Inc. (DWDP) $0.00 0.00% Coca-Cola Co. (KO) $68.96 -0.54% Procter & Gamble Co. (PG) $168.90 -0.69% Johnson & Johnson (JNJ) $162.70 -0.88% Walmart Inc. (WMT) $67.83 -0.95% McDonald's Corp. (MCD) $274.05 -0.95% Amgen Inc. (AMGN) $327.68 -1.18% Walt Disney Co. (DIS) $88.25 -1.27% Caterpillar Inc. (CAT) $316.65 -1.32% Home Depot Inc. (HD) $350.18 -1.37%

Dow Jones - Fallers

Intel Corp. (INTC) $19.97 -7.05% Walgreens Boots Alliance, Inc. (WBA) $10.80 -5.90% Apple Inc. (AAPL) $209.39 -4.85% Goldman Sachs Group Inc. (GS) $451.72 -4.02% Salesforce.Com Inc. (CRM) $236.74 -3.14% Microsoft Corp. (MSFT) $396.04 -3.05% Boeing Co. (BA) $164.84 -3.01% Cisco Systems Inc. (CSCO) $45.28 -2.72% International Business Machines Corporation (CDI) (IBM) $183.85 -2.67% Chevron Corp. (CVX) $144.76 -2.55%

S&P 500 - Risers

Kellanova (K) $71.84 14.07% Tyson Foods Inc. (TSN) $62.59 2.22% Church Dwight Co Inc. (CHD) $99.79 1.28% Welltower Inc (WELL) $113.50 0.66% Advanced Micro Devices Inc. (AMD) $132.92 0.32% Tractor Supply Company (TSCO) $253.42 0.26% AutoZone Inc. (AZO) $3,181.96 0.14% Dollar General Corp (DG) $121.73 0.12% Cerner Corp. (CERN) $0.00 0.00% Varian Medical Systems Inc. (VAR) $0.00 0.00%

S&P 500 - Fallers

CenturyLink Inc. (LUMN) $2.68 -12.54% Nvidia Corp. (NVDA) $99.49 -7.25% Intel Corp. (INTC) $19.97 -7.05% Bath & Body Works, Inc. (BBWI) $30.95 -6.78% Tapestry Inc. (TPR) $35.59 -6.66% Macy's Inc. (M) $14.90 -6.43% Citigroup Inc. (C) $55.10 -6.23% Fluor Corp. (FLR) $44.55 -6.21% Walgreens Boots Alliance, Inc. (WBA) $10.80 -5.90% Apache Corp. (APA) $26.98 -5.63%

Nasdaq 100 - Risers

Trip.com Group Limited (TCOM) $40.00 1.73% Cerner Corp. (CERN) $0.00 0.00% Mylan Inc. (MYL) $0.00 0.00% Citrix Systems Inc. (CTXS) $103.90 0.00% Activision Blizzard Inc. (ATVI) $94.42 0.00% Dish Network Corp. (DISH) $5.77 0.00% Maxim Integrated Products Inc. (MXIM) $0.00 0.00% Shire Plc Ads (SHPG) $0.00 0.00% Celgene Corp. (CELG) $0.00 0.00% Xilinx Inc. (XLNX) $0.00 0.00%

Nasdaq 100 - Fallers

Nvidia Corp. (NVDA) $99.49 -7.25% Intel Corp. (INTC) $19.97 -7.05% Walgreens Boots Alliance, Inc. (WBA) $10.80 -5.90% Vodafone Group Plc ADS (VOD) $8.79 -5.48% Tesla Inc (TSLA) $196.33 -5.46% Synopsys Inc. (SNPS) $480.26 -5.05% Align Technology Inc. (ALGN) $202.72 -5.04% Sirius XM Holdings Inc (SIRI) $2.96 -4.97% Micron Technology Inc. (MU) $88.14 -4.92% Apple Inc. (AAPL) $209.39 -4.76%