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The Dow has fallen by more than 500 points as investors fear the recession is imminent.

New York (CNN Business)On Tuesday, US stocks plummeted as investors feared a recession.

Dow (INDU)dropped nearly 600 points. S&P 500 (SPX)andNasdaq Composite Index (COMP)also fell in the afternoon trading.

The decline occurred after the market ended its most cruel first half performance in more than 50 years. All major indices have fallen in four of the last five weeks, and the S&P 500 is in the bear market, more than 20% below its January 3 high. According to analysts at the

Bank of America, the S&P 500's 20% decline in total revenue in the first half of this year was the worst since 1962 and the second worst start of the year. .. Data history since 1935.

Equities in sectors related to economic growth, such as banks and airlines, also fell on Tuesday. Citigroup(C)decreased by about 3.5%, butBank of America (BAC)andJPMorgan (JPM)is 2.8 and 2% decrease, respectively.
Delta(DAL)and United Airlines also went down.
Oil fell 8% and the US oil benchmark was trading below $ 100. This will provide some relief for the pump and may ease recent restrictions on consumer wallets. But energy stocks have been hit. The energy sector of S&P 500 decreased by 5%. ConocoPhillips(COP),Halliburton (HAL)andMarathon Oil (MRO)all decreased by more than 7%.

Some economists added investor concerns on Tuesday, saying they expect gross domestic product to fall for the second straight quarter. Many consider this a sign of a recession.

Benchmark 10-year government bond yields and 2-year yields reversed on Tuesday. Investors see this as another bad sign for economic health. If the yield on short-term government bonds is trading higher than the long-term yield, it can mean that the market is pricing in a recession and lowering interest rates.

The economy is facing financial difficulties after two quarters of record stimuli: strengthening unemployment benefits, strengthening child tax credits, and checking stimulus measures, JP Morgan Asset Management's third quarter Said David Kelly, Chief Global Strategist at. Outlook.

The federal budget deficit could drop from 12.4% of 2021 GDP to less than 4% of 2022 GDP, the largest single since the end of World War II. He said it would be a decrease. Coupled with the 30-year surge in mortgage rates, he wrote, "increased the risk of a short-term recession in the US economy."

Next week, second-quarter earnings will begin in earnest and investors are expecting a slowdown there, said Ivan Feinseth, Chief Investment Officer at Tigress Financial Partners. But with the unemployment rate announced later this week, the Fed could come up with good news.

Feinseth expects data showing rising unemployment in the United States. This may indicate an imminent recession. The decline in new employment raises expectations that the Federal Reserve will raise interest rates by 50 basis points at the end of the FOMC meeting in July later this month. The previous forecast was 75 basis points.