S&P 500 falls to start the week as investors’ recession fears grow: Live updates

The S&P 500 fell Monday as fears of a recession grew on Wall Street, and investors looked ahead to key inflation data this week.

The broader index slid 0.65%. The Dow Jones Industrial Average traded 15 points lower, or 0.05%. The Nasdaq Composite lagged, falling 1.26%.

Tech stocks struggled, with shares of Apple falling 1.9% and Google-parent Alphabet sliding 1.7%. Tesla shares fell 3.6% after the company said it will cut prices again on some electric vehicles.

Investors are digesting conflicting signals in the labor market. On Friday, the March jobs report showed a resilient economy and moderate inflation, following some signs of weakening in the labor market earlier in the week. That’s driving uncertainty around Federal Reserve policy and casting doubt as to whether the U.S. can dodge a recession. The New York Stock Exchange was closed for Good Friday.

Nonfarm payrolls grew by 236,000 for the month, about in line with the Dow Jones estimate of 238,000, the Labor Department reported. The unemployment fell to 3.5%, against expectations that it would hold from the previous month at 3.6%.

“We’re seeing what we believe is the same investor narrative, which is uncertainty around the mixed economic data, which is driving uncertainty around Fed policy and a greater concern — particularly with Friday’s strong employment data — that the Fed may again move forward with another rate hike,” AXS Investments’ Greg Bassuk said. 

“And I think investors have greater concerns about a potential US recession, and the markets seem to be under greater pressure as the Fed decision looms.”

Investors are in for a busy week of economic data, including the latest consumer price index and producer price index data – due out Wednesday and Thursday, respectively – which will be key in determining if or when the Fed will pause or put an end to its rate hiking campaign.

“Our guess is the equity market needs economic Goldilocks, a bit of slowing to continue to cool inflation expectations, but not too much to spark ‘hard landing’ fears,” Raymond James’ Tavis C. McCourt wrote in a Sunday note.

They’ll also get the first batch of companies reporting first-quarter financial results. Tilray Brands kicks things off Monday. The major banks – JPMorgan Chase, Wells Fargo and Citigroup – will report on Friday.