- Stocks fell amid gloomy economic warnings from bank CEOs, at a time when worries about the effects of Fed policy on growth and corporate earnings are rampant.
- A sell-off in tech behemoths like Apple and Microsoft weighed heavily on the market, with the Nasdaq 100 falling 2% and the S&P 500 falling for the fourth time in a row. Except for two companies, the KBW bank index of financial heavyweights fell. The dollar rose alongside treasuries as traders sought safety.
- David Solomon of Goldman Sachs warned about pay and job cuts, citing some rough times ahead. Bank of America is slowing hiring as fewer employees leave ahead of a potential economic downturn, according to CEO Brian Moynihan. Morgan Stanley will reduce its global workforce by about 2%, while Jamie Dimon of JPMorgan told CNN that a mild to hard recession could hit next year.
- According to Lisa Shalett of Morgan Stanley Wealth Management, some of the largest companies' earnings may be hit far more than expected next year as economic growth slows and inflation erodes consumers' purchasing power.
