Stock Market Today: Dow Dives 764 Points as Recession Fears Ramp Up
The major market indexes suffered their biggest one-day drop since September following the latest economic data.


It was an ugly day for stocks as the major market indexes extended yesterday's Fed-induced slump into a second straight day.
Today's selling was sparked by the latest batch of economic data, which exacerbated recession fears across Wall Street. Retail sales and manufacturing data released early Thursday showed that the Federal Reserve's aggressive campaign of interest rate hikes are indeed cooling both the U.S. economy and inflation. And yet Fed Chair Jerome Powell warned Wednesday that rates could stay higher for longer until tightness in the labor market starts to ease.
One economic data point that didn't come to pass today was any sign of cooling in the jobs market. Indeed, the Labor Department said earlier that weekly jobless claims fell by 20,000 last week to a seasonally adjusted 211,000.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Progress on slowing the economy was seen elsewhere, however, with data from the Commerce Department showing that retail sales fell 0.6% month-over-month in November – the weakest reading since December 2021. Additionally, data from the Fed showed manufacturing activity in both New York state and the Philadelphia region declined by more than expected.
"The labor market might not be breaking but it is becoming clear the consumer is weakening and manufacturing activity is in a recession," says Edward Moya, senior market strategist at currency data provider OANDA. "Labor market weakness will be more noticeable next year and that should help reduce some of the constant wage pressures we are still seeing."
Today's selling was widespread, with the rate-sensitive communication services (-3.9%) and technology (-3.7%) sectors bearing the brunt of the losses. As for the major indexes, the tech-heavy Nasdaq Composite slumped 3.2% to 10,810, the broader S&P 500 Index fell 2.5% to 3,895, and the blue-chip Dow Jones Industrial Average dropped 2.3% to 33,202. It was the largest one-day drop for all three indexes since September.
Is Growth Poised for a Comeback?
We're close to the end of what has been a truly unforgiving year for investors. After all, the S&P 500 is on track for its worst annual loss since 2008. Should investors expect more of the same in 2023? It depends on whom you ask.
Wells Fargo analysts Chris Harvey and Michael Turrin expect 2023 to be "a back-and-forth year." Yes, they anticipate "double-digit sell-offs driven by the Fed and economic concerns," but, "ultimately, we see equities ending higher as the inflation fever breaks, the economy enters a malaise (not a sharp recession) and interest rates plateau." The duo add that the environment is supportive of growth, particularly at the mid-cap level, which is where they believe investors can find the best growth stocks.
Although there are plenty of opportunities to be found in growth-oriented investments, investors who want to spread the risk around may want to consider these best growth ETFs for 2023. The names featured here offer broad exposure to higher-risk, higher-reward stocks across a range of strategies.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
RMD Deadline April 1: Five Tax Strategies to Manage Your 2025 Income
Taxable Income The April 1, 2025, deadline for required minimum distributions (RMDs) is fast approaching for retirees who turned 73 in 2024.
By Kelley R. Taylor Published
-
Rising AI Demand Stokes Undersea Investments
The Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
By John Miley Published
-
Stock Market Today: Dow Sinks 715 Points as Inflation Unrest Grows
Inflation worries are showing up in both hard and soft data.
By Karee Venema Published
-
Stock Market Today: It's Going to Stay Choppy for Stocks
Auto-focus can show us a lot about uncertainty on the ground and in the stock market.
By David Dittman Published
-
Stock Market Today: Auto Tariffs Send Stocks Lower
The main indexes snapped their win streaks after the White House confirmed President Trump will talk about auto tariffs after the close.
By Karee Venema Published
-
Stock Market Today: Stocks Seesaw After Big Market Rally
The latest consumer confidence data showed sentiment remains low.
By Karee Venema Published
-
Stock Market Today: Markets Celebrate Trump's Tariff Détente
Consumer discretionary stocks led 10 of the 11 S&P 500 sector groups well into the green.
By David Dittman Published
-
Stock Market Today: Stocks Swing Higher After Early Slump
Negative earnings reactions for Nike, FedEx and Micron kept pressure on the main indexes, though.
By Karee Venema Published
-
Stock Market Today: Stocks Struggle After Big Fed Gains
An unexpected rise in existing home sales couldn't save stocks on Thursday.
By Karee Venema Published
-
Stock Market Today: Stocks Enjoy a Fed Day Relief Rally
The question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.
By David Dittman Published