Stocks Plunge Thursday Afternoon As Recession Fears Rise; Financials are down, homebuilders tumble on rising mortgage rates

During Thursday’s session, 1 stock traded at a 52-week high, while 205 stocks hit a new 52-week low. The S&P 500 is down 3.39% so far today, while the Dow Jones is down 2.45%, the Nasdaq is down 4.27% and the Russell 2000 is down by 4.7%.

Stocks are down sharply on Thursday afternoon. Cryptos are lower. Recession fears are weighing on sentiment after yesterday’s 75 basis point rate hike as traders fear the Fed will have to push the economy into recession in order to bring inflation under control.

KB Home (KBH) is down 8.81% as homebuilders tumble on rising rates. Mortgage rates saw their biggest jump since 1987, hitting 5.78%, the highest rate since 2008. Meanwhile, housing starts hit an annualized rate of 1.549 million units, missing estimates of 1.7 million and down from 1.8 million in April. Meanwhile, building permits slowed more than expected to a pace of 1.695 million after April’s annualized rate of 1.823 million.

Finally, Kroger Co (KR) is down 0.94% after the company announced a strong beat-and-raise. Kroger easily beat earnings and revenue estimates, while providing a bullish outlook for full-year 2023. Profit-taking was likely behind today’s selloff, which saw the stock drop more than 2% at one point, despite the strong report.

Sector Highlights

The Financials sector accounts for the majority of our 52-week lows, as 35 of our 205 lows come from the Financials sector. The financial services sector is outperforming the market today, down 2.49% so far on the day. Over the past month, the financials sector has outperformed the market, falling 5.76% while the S&P is down 5.81%.

Financial services: AMG, AMP, APO, ARCC, ARES, AUB, BAC, BCSF, BEN, BHF, BKCC, BKU, BLK, BLX, BOH, BOKF, BRK.B, BSIG, CBU, CFG, CNO, CNS, COF, COLB , COWN, CPF, CSWC, CURO, DFS, EGBN, ENVA, ESNT, EVR, EWBC, FAF

The lists

The following stocks hit 52-week highs:

GO

The following stocks traded at 52-week lows:

AAL, AAP, AAT, ABMD, ABT, ACCO, ACIW, ACRE, ADBE, ADES, ADI, ADS, ADSK, ADT, AEIS, AER, AGCO, AGIO, AGNC, AKBA, AKR, AKTS, AL, ALEX, ALGN, ALLE, ALLK, ALV, AMAT, AMCX, AME, AMG, AMKR, AMP, ANIP, ANSS, AOS, APH, APO, APPN, APPS, APTV, ARAY, ARCC, ARDX, ARE, ARES, ARI, ARR

The following ETFs traded at a 52-week high:

OTC

The following ETFs traded at a 52-week low:

AFK, CUT, DIA, EFA, EGPT, EPOL, EPP, EWA, EWC, EWG, EWJ, EWN, EWQ, EWS, EWY, EZU, FDN, IAI, IBB, IGN, IGV, IHF, IHI, IOO, ITA, ITB, IWC, IWF, IWM, IYF, IYG, IYH, IYJ, IYM, IYT, IYZ, KBE, KCE, KIE, KRE, MDY, OEF, PHO, PIN, PPA, QAI, QQQ, SDY, MER

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