Wall Street stocks close lower in another down week

• The Dow Jones Industrial Average fell one percent to 32,898.91.
• Dow and S&P 500 were both down roughly 1% this week.
• Nasdaq was down 1.25 percent.

US shares dropped again Friday, ending another week in the red following a small positive respite last week, Despite the ever-present fears about inflation and a future recession.

“We are still in a bear market and until proven otherwise the path of least resistance is down,” Maris Ogg of Tower Bridge Advisors, told AFP.

The Dow Jones Industrial Average fell one percent to 32,898.91 at the end of the session.

The S&P 500 index down 1.6 percent to 32,898.91, while the tech-heavy Nasdaq Composite Index fell 2.5 percent to 12,012.73.

The Dow and S&P 500 were both down roughly 1% this week, while the Nasdaq was down 1.25 percent.

Better-than-expected US employment gains in May added to the inflation worries even though wage gains slowed, and a services sector index showed growth slowing in that dominant area of the world’s largest economy.

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Economists said the data was good news for the Federal Reserve, which is aggressively raising interest rates in an all-out offensive against sky-high price increases.

But Ogg said major components of inflation are not improving.

“Oil is not going to get better, labor is not going to get better, housing is not going to get better. Housing and labor are in shortage,” she said. “As far as the stock market goes, I would be surprised if the worst is over.”

Tesla shares fell 9.2 percent after Elon Musk, the CEO of the electric carmaker, warned staff that the business expects to decrease the paid workforce by 10% and rely on more hourly workers because he has a “very awful feeling” about the economy.

Read more: Wall Street stocks open higher, extending gains