US stocks open lower as investors worry about impending recession

US stocks open lower as investors worry about impending recession

U.S. stocks opened lower on Tuesday, weighed down by a sharp decline in shares of social media platform Snap, which warned of the inability to meet forecasts for the second quarter due to economic conditions. economy worsens.

At 9:51 a.m. ET, the Dow Jones Industrial Average was down 150 points, or 0.4%, while the S&P 500 was down 1.3% and the Nasdaq Composite was down 2.5%.

Shares of Snap Inc fell 37% after warning Monday night that it would not meet previously released guidelines, as the macroeconomic environment deteriorated faster than expected. Shares of other social media companies such as Meta Platforms Inc and Twitter Inc (NYSE:TWTR) also fell. 

Companies use digital advertising, which has been restricted since Apple (NASDAQ:AAPL) made privacy changes to its systems. Like other tech companies, Snap said it would postpone additional hiring to control costs.

The warning has raised alarms of a possible recession, which investors have begun to worry about about the Federal Reserve's stance on interest rates. 

The central bank is expected to raise interest rates by half a point in its next two meetings to rein in inflation, but some worry it will act too aggressively and push the economy into recession.

The manufacturing purchasing managers' index for April came in at 57.5, while the services PMI came in at 53.5, slightly lower than expected.

Shares of Abercrombie & Fitch Co fell 27% after posting an unexpected loss in the recent quarter. But shares of electronic retailer Best Buy Co Inc jumped more than 3% after revenue beat expectations.
Oil prices increase. WTI crude oil futures rose 0.8 percent to $111.19 a barrel, while Brent crude futures rose 0.6 percent to $111.60 a barrel. Gold futures rose 0.8% to $1,863 an ounce.

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