By Yasin Ebrahim
Investing.com -- The S&P 500 cut some losses Thursday, but remained on course for its worst first-half performance in decades as worries about a recession mount in the wake of Federal Reserve rate hikes to combat surging inflation.
Energy led the broader market lower under pressure from falling oil prices after OPEC and its allies including Russia, or OPEC+, said they would stick with the previously announced output plan, resisting calls to step up the pace of production.
Following two days of meetings, OPEC+ said they would increase monthly overall production for the month of August to 648,000 barrels per day, unchanged from a prior agreement earlier this month.
Tech stocks cut some losses, but remained a big drag on the broader market even as Treasury yields slipped after fresh signs that economic growth is slowing.
The 10-year Treasury yield slipped below 3% after data showing consumer spending is less robust than many believe, stoked recession fears and offset a slower than expected rise in inflation.
Consumer spending rose by 0.2 percent in May, short of forecasts for a 0.4% rise, while last April’s figure was revised down to 0.6% growth from 0.9% previously.
As the consumer makes up about 70% of the economy, if they “are not out spending there is little hope the U.S. can avoid a near-term downturn,” Stifel said in a note.
Apple (NASDAQ: AAPL ), Amazon (NASDAQ: AMZN ), Alphabet (NASDAQ: GOOGL ) and Microsoft were down more than 1%. Meta Platforms (NASDAQ: META ) was down less than 1% on the day even as the social media company is reportedly bracing for slower growth in the second-half of the year, Reuters reported Thursday, citing an internal company memo.
Chip stocks, which led the slide in tech a day earlier, were also on the backfoot as investors awaited quarterly results from chipmaker heavyweight Nvidia (NASDAQ: NVDA ) due after the market closes.
On the earnings front, RH (NYSE: RH ) fell about 10% after the furnisher company cut its full-year outlook, flagging weaker consumer demand that could continue into second of half of the year.
Walgreens Boots Alliance (NASDAQ: WBA ), meanwhile, reported quarterly earnings that topped Wall Street estimates, but the drugstore chain kept its guidance unchanged as a slowdown in demand for Covid-19 vaccines is expected to weigh on growth.
In other news, bitcoin slipped below $20,000, triggering a fresh bout of selling across crypto-related stocks, with Coinbase (NASDAQ: COIN ), Marathon Digital (NASDAQ: MARA ) , and Riot Blockchain (NASDAQ: RIOT ) nursing heavy losses.
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