Live Stock Market News Updates: Stocks plunge after more bad news about the US economy

Stocks sank early Friday, heading for a second straight weekly loss, as more downbeat news about the US economy accelerated a move lower.

Close to 10:10 a.m. ET, the S&P 500 and Dow were down 1.2%, while the Nasdaq was down 0.8%.

Earlier in the session, the Nasdaq moved into positive territory.

The latest move lower for stocks came on the heels of preliminary readings of economic activity in the US this month from S&P Global, which showed a further deterioration in activity starting in December.

The S&P Global services PMI fell to a four-month low, while the manufacturing index hit a 31-month low in December.

“Business conditions are worsening as 2022 draws to a close, with a sharp drop in the PMI indicating GDP contracted in the fourth quarter at an annualized rate of about 1.5%,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “Job growth has meanwhile slowed to a crawl as companies in both manufacturing and services take a more cautious approach to hiring amid sluggish customer demand.”

On Thursday, the retail sales report for November was unexpectedly weak, raising concerns about the health of the US consumer, which has been the driver of a better-than-expected economy this year.

After recovering earlier this week, US stocks returned once again to record weekly losses once again, after last week witnessed the S&P 500 index incurring its worst weekly loss since late September.

Investors were also watching crude oil early on Friday, with WTI futures down more than 3% to trade near $73.70 a barrel. Early this week, oil hit a new 2022 low.

Friday’s trading follows Thursday’s sell-off that saw the Nasdaq fall more than 3%, as the Federal Reserve’s interest rate hike on Wednesday was followed by matching moves Thursday morning from the Bank of England and the European Central Bank.

On the earnings calendar, the news was light, with Darden Restaurants (DRI) and Winnebago Industries (WGO) both up after their latest reports.

Story continues

In the cryptocurrency markets, bitcoin (BTC-USD) and other major cryptocurrencies came under selling pressure early on Friday, with bitcoin dropping below $17,000 in early trading. Earlier this week, bitcoin rose above $18,000 for the first time since the FTX crash in early November.

Mazars, the news accounting firm, paused its work with Binance and all other cryptocurrency firms squeezed into the space early Friday.

Click here for the latest stock market news and in-depth analysis, including the events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for apple or android

Follow Yahoo Finance on Twitter TwitterAnd the FacebookAnd the InstagramAnd the FlipboardAnd the linkedinAnd the YouTube