Stock markets mixed as traders weigh dark outlook

Markets were mixed Wednesday, with little sign of any relief from recent dour performances as investors remain fearful about the economic outlook owing to the impact of inflation, higher interest rates, China’s slowdown and the Ukraine war. A series of weak indicators around the world and downbeat forecasts from big firms have chilled trading floors in recent weeks as the surge in prices begins to drag on consumer confidence, with warnings now swirling of a possible global recession.

The tech sector was again in the firing line after Snap, the parent of social media app Snapchat, provided a gloomy economic outlook, sending its shares diving more than 40 percent.

Wall Street titans followed Snap down, with Facebook- parent Meta and Google- parent Alphabet tanking.

The mood was not helped by news that US new home sales tanked in April while the Richmond Fed manufacturing index also fell, with both at the lowest levels since the coronavirus pandemic began in 2020.

“The market is moving its focus -and has been for the last month or so -- from inflation concerns to growth concerns,” said Ellen Hazen of FL Putnam. Hong Kong, Shanghai, Sydney, Seoul, Taipei, Manila and Bangkok rose, while Tokyo, Mumbai, Singapore, Jakarta and Wellington fell. London, Paris and Frankfurt rose after tanking on Tuesday. Investors are now awaiting the Fed’s next move on interest rates, with expectations for more half- point hikes to come as officials struggle to bring inflation down from four- decade highs.