US stock indexes opened lower on Tuesday as global fears
about a looming recession were raised by a weak forecast from the International
Monetary Fund (IMF).

The S&P 500 fell 35.86 points or 1% to 3,576.53 as of
10.23 am Eastern time. The Dow Jones Industrial Average fell 71 points, or
0.25%, to 29,131.22. The Nasdaq fell 154.89 points or 1.47% to 10,387.21.

Technology stocks were the biggest losers in the broader
market. Chipmakers continued falling in the wake of the US government’s
decision to tighten export controls on semiconductor and chip manufacturing
equipment to China. Intel slipped 1.3%.

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Equity markets in Europe and Asia also ended lower.

Uber plunged 12.7% and Lyft fell 12.6% after the Department
of Labor released a proposal on how workers should be classified, which could
change the status of the ride-sharing companies’ workers.

Household goods makers and utilities stood stronger than
the rest of the market as investors move more money into the sectors, which are
considered less risky.

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Bond yields were mixed. The yield on the 10-year Treasury,
which helps determine mortgage rates, rose to 3.95% from 3.88% late Friday. The
yield on the two-year Treasury, which often tracks Federal Reserve action, fell
to 4.27% from 4.30% late Friday. Bond markets were closed on Monday for a
holiday.

Recession concerns have been hurting market sentiments as
stubbornly hot inflations affect businesses and consumers. US stocks are coming
off of four consecutive losses. Economic growth has been slowing down as
consumers temper spending and central banks worldwide raise interest rates.

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The International Monetary Fund (IMF) on Tuesday slashed
its forecast for global economic growth in 2023 to 2.7%, down from the 2.9% it
had estimated in July. The downward forecast comes as Europe faces a
particularly high risk of a recession with energy costs soaring amid Russia’s
invasion of Ukraine.

Investors have a busy week ahead of economic and corporate
earnings reports that could provide further insights on inflation’s impact,
while also raising questions about whether the Fed should continue with its
aggressive interest rate hikes.

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On Wednesday, the Fed will release minutes from its last
meeting, possibly giving Wall Street a clearer picture of its views on
inflation and the next steps. The government will release its report on
wholesale prices. The report on consumer prices will be released on Thursday
and the retail sales report on Friday. PepsiCo, Delta Air Lines, Domino’s
Pizza, Citigroup, and JPMorgan Chase will report quarterly results this week.