The stock market fell for a second day in a row on Tuesday as markets failed to build on last week's strong rebound from lows with investors once again selling off shares due to recession fears and new economic data.
The stock market is tanking this week despite a strong rally last week.
The S&P 500 lost 2% and the tech-laden Nasdaq lost 3% as the stock market erased earlier gains.
The Conference Board's consumer confidence index fell to a reading of 98.7 in June, its lowest level in more than a year.
The Conference Board said that consumers' short-term outlook for the economy fell from 73.7 last month to 66.4 in June, the lowest reading in nearly a decade.
Home Depot, Lowe's, and Macy's all took a hit from the latest economic data, with Home Depot falling 4% or more and Lowe's and Macy's losing 2% or more.
Energy stocks were the only positive sector in the S&P 500, rising by around 5%, while consumer and tech stocks were the only negative ones.
After China relaxed its Covid-19 restrictions for travelers entering the country, shares of Wynn Resorts and Las Vegas Sands jumped over 3%.
The market fell for a second day in a row on Monday. The S&P 500 has fallen by 15% in the second quarter and is down over 20% in the next four years. The benchmark index is on track for its worst performance since the early 2020s when the economy was in a recession.
Lynn Franco, senior director at the Conference Board, said that consumers were concerned about rising gas and food prices. There is a growing risk of a recession by the end of the year as expectations have fallen below a reading of 80.
Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said that higher inflation and higher interest rates are beginning to wear on confidence. At an inflection point in the economy, where actual spending and economic activity is still positive, however, consumer confidence and financial conditions are signaling a slowdown ahead.
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