Tumbling U.S. stocks stoke recession fears: Sky News

LONDON, May 20 (Xinhua) -- U.S. stock markets saw their biggest daily losses since June 2020 on Wednesday and it has stoked a panic over the prospects for an inflation-fueled recession, Sky News reported on Thursday.

On Wednesday after some retailers released disappointing financial results with damage from raging inflation, the Dow Jones Industrial Average plunged 1,164.52 points, or 3.57 percent, to 31,490.07, and the S&P 500 fell 165.17 points, or 4.04 percent, to 3,923.68.

While markets rebounded after a strong performance by key technology stocks on Tuesday, "a 40-year high for US inflation and the prospect of a series of sharp interest rate hikes ahead has spooked investors and damaged the so-called growth stocks," said Sky News.

U.S. consumer inflation in April surged by 8.3 percent from a year ago, marking the second straight month of inflation over 8 percent.

"Inflation is hitting every aspect of an earnings report, whether it be the transportation side or supply-chain disruption," Nick Giacoumakis, president and founder of NEIRG Wealth Management, told the Wall Street Journal, according to Sky News.

"Customers are no longer buying the more expensive items they would typically buy. All this trickles through to an earnings report," Giacoumakis added.

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