Shares of banks and other financial institutions fell, amid fears that the U.S. was set to enter a major slowdown.
A growing camp of financial analysts are interpreting signals from the stock market as pointing to a recession this year, citing the depth and the length of the decline in the S&P 500, The Wall Street Journal reported.
"At the beginning of the year, no one thought that the S&P 500 was headed to bear market territory, but persistent inflation, another Fed policy mistake, and recession fears have unnerved investors," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group.
China's central bank cut a key interest rate while keeping another unchanged, an unexpected policy shift that suggests economic officials are trying to forestall a major slowdown.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-20-22 1712ET
