Lede

Wall Street closed lower due to concerns over a cooling economy and the potential impact of the Federal Reserve's efforts to control high inflation, with data indicating a drop in U.S. job openings and factory orders, further fueling recession fears.

Summary

• All three major indexes closed lower as data showed a decline in U.S. job openings and factory orders for a second straight month, raising concerns about a cooling economy and potential recession.
• Bank stocks, including Bank of America and Wells Fargo & Co, dropped by more than 2%, while the S&P 500 banks index fell 1.9%, as JPMorgan Chase & Co CEO Jaime Dimon warned of the ongoing banking crisis and its lasting impact.
• The S&P 500 fell 0.58% to 4,100.68 points, while the Nasdaq declined 0.52% to 12,126.33 points, and the Dow Jones Industrial Average fell 0.59% to 33,403.04 points, with seven out of the 11 S&P 500 sector indexes declining.
• Heavyweight chipmaker Nvidia weighed the most on the S&P 500's decline, losing 1.8%, while Caterpillar Inc, seen as a bellwether for the industrial sector, fell 5.4%.
• Healthcare and utilities were among the few S&P 500 sector indexes that gained on Tuesday, as investors looked for sectors expected to hold up better during an economic slowdown.
• Trading in interest rate futures showed bets tilting towards a pause by the Fed in May, with odds of a 25-basis point rate hike at 42%, compared to nearly 60% before the data.
• So far in 2023, the S&P 500 has gained nearly 7% but remains down about 15% from its record high close in January 2022.
• Virgin Orbit Holdings Inc slumped 23.2% after filing for Chapter 11 bankruptcy due to the inability to secure long-term funding, while AMC Entertainment Holdings Inc shares tumbled 23.5% after agreeing to settle litigation and convert its preferred stock into common shares.
• Shares of Digital World Acquisition Corp fell 8% after the SPAC linked to former U.S. President Donald Trump delayed the filing of its annual financial report.
• The U.S. stock market recorded 2.2 declining stocks for every rising one, with 14 new highs and one new low for the S&P 500, and 64 new highs and 238 new lows for the Nasdaq.
• Volume on U.S. exchanges was relatively light, with 10.3 billion shares traded, compared to an average of 12.8 billion shares over the previous 20 sessions.