Stocks Drop as Recession Fears Mount

Stocks fell on Tuesday as concerns about a possible recession in the U.S. keep hitting Wall Street’s main indexes.

The S&P 500 fell 2.4% as of 11:30 a.m. Eastern. The Dow Jones Industrial Average fell 2.20%, and the tech heavy Nasdaq fell 1.2% in the weak opening following a long weekend for the Independence Day holiday.

U.S. stocks have been hit hard this year, with the S&P 500 index recording its steepest first-half percentage drop since 1970.

The price of oil had a major impact on Tuesday’s trading after a steep decline in crude that hit energy stocks. Futures for U.S. benchmark crude WTI slid 8%, or $8.67, to trade at $99.76 per barrel. International benchmark Brent crude loss 7.7%, or $8.74, to trade at $104.76 per barrel.

The stock decline overshadowed investors’ optimism about the possibility of the U.S. rolling back tariffs on China.

Investors are expecting for the Fed’s meeting in June on Wednesday, as they brace for another 75-basis point hike at the end of the month.

Concerns on the economic growth were also growing overseas, with European markets reporting declines.