More recession concerns send Wall Street down again
Stocks fell for the second day in a row on Wall Street Wednesday, weighed down by worries about a slow recovery for the economy.
The weakenss came after Federal Reserve Chair Jerome Powell warned about the threat of a prolonged recession because of the shutdowns related to the coronavirus pandemic.
The S&P 500 lost 1.7%. The sharpest losses hit stocks that most need a healthy economy for their profits to grow, like energy companies and banks. The market has been wavering the last few weeks as optimism about reopening the economy collides with worries about the dangers of lifting restrictions too soon.
”At this stage now, we think there are more risks to the downside than the upside,” said Liz Ann Sonders, chief investment strategist at Charles Schwab.
”Consumers in general are going to be more wary and more interested in boosting savings rates and are unlikely to come back to a world of consumption anywhere near what it looked like before,” she said.
