Growing Worries of U.S. Economic Recession Drag Down Wall Street Indexes

Barry Adams
13 Mar, 2025
New York City

Stocks struggled in New York amid growing worries about the health of the U.S. economy and future rate path. 

The S&P 500 index declined 0.4%, and the Nasdaq Composite fell as much as 0.9% and extended weekly losses to 3%.

Benchmark indexes are likely to close down for the fourth week in a row, as the Trump administration doubles down on global tariff trade policy despite its impact on consumers and the broader economy. 

The European Union slapped tariffs on American products, including whiskey and motorcycles, in retaliation to the U.S. tariff on steel and other manufactured products. 

Investors are concerned that the constantly changing Trump administration's tariff wars are adding another layer to the market volatility, economic uncertainty, and turmoil in the world trade. 

However, the latest producer price inflation report showed that those tariff wars, so far, have not fueled inflation. 

Producer price inflation was 3.2% in February, slower than the revised 3.7% in January, the U.S. Bureau of Labor Statistics reported Thursday.

Core inflation, which excludes volatile energy, food prices, and services, slowed to a ten-month low of 3.3% in February.

Despite the slowdown in consumer and producer price inflation, both measures are still higher than 2%, suggesting that elevated levels are here to stay for several months or longer.

Weekly jobless claims in the first week in March edged down 2,000 to 220,000, and continuing claims which lag by a week dropped 27,000 to 1.87 million, the U.S. Bureau of Labor Statistics reported Thursday. 

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index decreased 0.4% to 5,577.78, the Nasdaq Composite edged down 0.7% to 17,525.10, and the Russell 2000 index was up 0.05% to 2,027.50.

The yield on 2-year Treasury notes edged higher to 4.01%, 10-year Treasury notes increased to 4.34%, and 30-year Treasury bonds advanced to 4.65%.

WTI crude oil decreased $0.66 to $67.02 a barrel, and natural gas prices edged lower by $0.10 to $3.98 a therm. unit.

Gold increased by $6.15 to $2,944.12 an ounce, and silver edged down by $0.17 to $33.10.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased 0.44 to 104.06 and traded at a two-year high.

 

U.S. Stock Movers

Adobe Inc. dropped 10.9% to $391.38 after the graphic design software developer reported strong results for the fiscal first quarter of 2025 ending in February, but the company's weak sales outlook failed to impress investors. 

The company guided second quarter revenue to range between $5.77 billion and $5.82 billion, up from $5.31 billion a year ago, and earnings per share between $3.80 and $3.85, up from $3.49 in the same period in 2024.

American Eagle Outfitters Inc. dropped 5.1% to $10.86 after the specialty apparel retailer reported comparable sales growth of 3% in the fiscal fourth quarter of 2024.

However, the specialty apparel retailer estimated current quarter sales growth in the "mid-single-digit," lower than the market expectation of at least a 1% increase. 

SentinelOne declined 3% to $18.68, and the cybersecurity company's quarterly results surpassed market expectations, but the current quarter sales outlook of $228 million fell short of market expectations. 

Intel Corp. jumped 16% to $24.08 after the company appointed a new chief executive to lead its turnaround efforts. 

Lip-Bu Tan, former chief executive of Cadence Design Systems, will assume the top position and lead the company's effort in setting up its foundry operation and accelerate its new chip designs.