U.S. stocks declined on Friday, thereby falling towards a second consecutive weekly loss. The S&P 500 lost 1.5% while the Dow Jones and the Nasdaq Composite Index declined by 1.3% and 1.4% respectively.
Friday’s stock plunge came after S&P Global released preliminary readings suggesting that U.S. economic activity is set to deteriorate in December.
“Business conditions are worsening as 2022 draws to a close, with a steep fall in the PMI indicative of GDP contracting in the fourth quarter at an annualized rate of around 1.5%,” chief business economist at S&P Global Market Intelligence Chris Williamson reported.
Williamson added that a slump in customer demand has led to stagnating job growth. Jobs in both manufacturing and services are on the decline as a result.
Thursday’s November retail sales report also returned less than stellar results, as U.S. consumers continue to reel from the ongoing inflation crisis and a rise in the Consumer Price Index.
Nasdaq fell by more than 3% on Thursday following the Federal Reserve’s decision to increase interest rates by 50 basis points.