According to The Confidence Board's latest readings, there was nowhere for stocks to go but down with consumers expecting higher inflation, and consumers losing confidence at a fast rate.
Consumer confidence and financial conditions especially interest rate indicate a slowdown ahead, according to Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, told CNBC Tuesday that we are at an inflection point in the economy. If we are able to avoid a recession, the stock market is fairly valued, however, we would expect the lows for the year haven't been hit yet. The Nasdaq Composite was the hardest hit index, losing 2.98 percent or 343.06 points. The index closed at 11,181. The Dow Jones industrials fell by 491 27 points or 1.56 percent to 30,946. The Standard and Poor's 500 retreated 78 56 points or 2.01 percent to 3,821. The U.S. dollar went up with the euro falling to 1.0524. The British pound fell to 1.2185. The Japanese yen fell to 136.11 The Swiss franc was slightly lower at 0.9574.
The Australian dollar was losing friends at 0.6908. The CAC 40 in Paris, France rose 0.64 percent on overseas equity markets. The German Dax added 0.35 percent. The FTSE 100 was down 0.90 percent in London.
The Hang Seng in Hong Kong added 189.45 points or 0.85 percent to 22,418. The Australian All Ordinaries rose by 59.80 points or 0.87 percent to 6,953. The S&P NZX 50 added 20.70 points or 0.19 percent to 11,018 in New Zealand. In Japan the Nikkei 225 climbed 178.22 points or 0.66 percent to 27,049.