Stocks fell marginally in morning trading on Wall Street
Friday, extending a falling streak as markets worry about high inflation and
the possibility that higher interest rates could bring on a recession.

The S&P 500 fell13.33 points or 0.35% to 3,772.05 as of
10:20 a.m. Eastern Time Zone. The Dow Jones Industrial Average fell 148.72
points or 0.48% to 30,626.71. The Nasdaq Composite fell 22.18 points or 0.20%
to 11,006.56.

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The market is seeing a deep slump. On Thursday, the S&P
500 closed its worst quarter since the starting of the pandemic in early 2020.
Its performance in the first six months of 2022 was the worst since the first
half of 1970.

The benchmark has been in a bear market since last month,
which means an extended decline of 20% or more from its most recent peak. It is
now 21% down from the highest level it touched at the beginning of this year.

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The latest fall precedes a long holiday weekend. US financial markets will be closed on Monday for Independence Day.

Energy and technology stocks were among the major laggards
on Friday. Hess fell 2.4% and chipmaker Micron slid 5.6% after giving investors
a disappointing profit outlook.

Retailers and other companies that depend directly on
consumer spending made solid gains. Amazon jumped 1.3% and Starbucks added
2.7%.

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Bond yields declined significantly. The yield on the
10-year Treasury, which helps set mortgage rates, slipped to 2.84% from 2.97%
last Thursday. The yield on the two-year Treasury fell to 2.80% from 2.92%.

Investors remain concerned about the risk of a recession as
economic growth slows and the Federal Reserve aggressively hikes interest
rates. The central bank is raising interest rates to intentionally slow
economic growth to help control inflation, but could potentially go too far and
lead to a recession.

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Economic data over the last few weeks have shown that
inflation remains high and the economy is slowing. It has raised hopes on Wall
Street that the Fed will eventually ease off its aggressive policy to raise
rates, which have been weighing on stocks, especially pricier sectors like
technology. Analysts don’t anticipate much of a rally for stocks until there
are solid signs that inflation is cooling. 

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According to the latest data, the manufacturing sector
shows a continued slowdown in growth in June that was sharper than economists
expected. A report on Thursday showed that a measure of inflation that is
closely watched by the Fed rose 6.3% in May from a year-ago period, unchanged
from its level in April.