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  • The San Juan Daily Star

Wall St wavers on rising recession worries; Apple, Tesla slump

The index futures point to another down day on Wall Street on Wednesday ahead of key catalysts coming on Friday and early next week.

Stocks pulled back yet again on Tuesday as worries concerning the economy’s health and a rising rate environment triggered a sell-off.

The S&P 500 Index and the Nasdaq Composite Index settled at a one-month low, while the Dow Industrials closed at its lowest since Nov. 17. Most sectors moved to the downside, led by technology, communications and energy stocks. Meanwhile, utility stocks gained ground in the session.

If the Fed raises the fed funds rate by 50 basis points next week, the central bank will be near parity or neutral, Fund manager Louis Navellier said. A 50-basis-point hike will take Fed rates to 4.25%-4.50% and the 10-year Treasury note yield is currently around 3.5%, he noted.

“If the FOMC statement mentions dovish words like parity or neutral, the stock market could stage a massive relief rally. But the FOMC never fights market rates, so I remain in the camp that December will be the Fed’s last key interest rate hike,” he added.

On the economic front, the Mortgage Bankers Association is scheduled to release its mortgage applications volume data for the week ended Dec. 2 at 7 a.m. EST. In the previous week, the measure fell 0.8% week-over-week.

The Labor Department is scheduled to release its final third-quarter productivity and costs report at 8:30 a.m. EST.

The Energy Information Administration is set to release its weekly crude oil inventories report at 10:30 a.m. EST.

At 3 p.m. EST, the Federal Reserve will release its consumer credit report for October.

Crude oil futures were down for a fourth straight session, with a barrel of WTI-grade crude oil trading down over 1% at $73.38. The weakness in black gold can be traced back to worries concerning tempered demand amid weakening economic growth.

The global markets followed Wall Street lower, with the Asia-Pacific markets ending uniformly lower. European stocks traded moderately lower in late-morning deals.

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