Stocks fell and rates on government bonds surged on Wednesday as investor concerns about a slowdown in economic growth continued to weigh on markets, while oil jumped to a 13-week high on the back of climbing US gas prices.
The stock market moved lower amid ongoing economic uncertainty: The Dow Jones Industrial Average fell 0.8%, nearly 300 points, while the S&P 500 lost 1.1% and the tech-heavy Nasdaq Composite 0.7%.
Rates on government bond yields surged higher as recession fears continued to weigh on investor sentiment, with the ten-year Treasury note once again surpassing 3%.
Many experts are warning that the economy is heading for a hard landing as the Federal Reserve tries to combat inflation by aggressively raising interest rates: The Atlanta Federal Reserve recently predicted that GDP will grow just 0.9% in the second quarter, down from a previous estimate of 1.3%.
Oil prices also spiked higher, hitting a 13-week high amid rising demand for US gasoline, which is averaging more than $5 per gallon in over a dozen states: US benchmark West Texas Intermediate rose to $122.5 per barrel, while international benchmark Brent crude now sits at $124 per barrel.
Energy giant Exxon Mobil hit a new all-time high of nearly $105 per share on Wednesday, with analysts predicting further upside due to rising oil and gas prices—even after the stock’s momentous 65% gain so far this year.
Investor anxiety around corporate earnings also weighed on markets, especially after negative profit outlooks from the likes of Credit Suisse and Intel on Wednesday, shares of which fell over 1% and 5%, respectively.