Stocks tanked Tuesday, after a report showing a big slowdown in the services sector of the economy and cautionary comments from a Fed official amplified fears that a recession is underway or imminent.The Dow Jones industrial average (INDU) lost about 370 points, seeing its worst one-day point loss since mid-October. The decline equaled a drop of 2.9%.
The broader Standard & Poor's 500 (SPX) index lost 44 points, its worst single-day point loss in almost 6 months. The decline equaled a drop of 3.2%....
The ISM services index, a survey of services sector executives, showed business activity falling in January for the first time in five years. The report was released nearly an hour ahead of schedule, unnerving investors at the start of trade. The report countered last week's reading on the manufacturing sector, which showed expansion...
Richmond Fed President Jeffrey Lacker, in a speech Tuesday, said that the report raises the risks of a recession, Briefing.com reported. However, he said that inflationary pressures are also rising, which could limit further interest rate cuts.
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