The S&P 500 posted losses for a fifth day as traders contemplate recession prospects and yields

Stocks fell in a choppy session on Wednesday as traders weigh the possibility of a recession, and the possibility of a longer than expected walking cycle from the Federal Reserve.

The S&P 500 fell 0.3% last time. The Dow Jones Industrial Average traded 22 points, or down 0.1%. Despite gains for 3M and Home Depot. The Nasdaq Composite fell 0.6%.

“The market kind of bobbed and weaved and found its breath after the big rally from the October lows,” said Ryan Dietrick, chief market strategist at Carson Group. He expects markets to continue this trend until investors receive more clarity from the December Fed policy meeting and November CPI report.

Next week, the central bank is widely expected to raise interest rates by 50 basis points. While the move may represent a reversal from the previous four interest rate hikes, concerns swirl over whether the Fed can engineer a so-called soft landing while successfully mitigating inflation.

Concerns about a recession in 2023 have spooked some investors in recent days, as Jamie Dimon, CEO of JPMorgan Chase & Co. said. CNBC’s “Squawk Box.”on Tuesday that inflation could push the economy into recession.

Combined with an inverted yield curve, markets undoubtedly expect a recession next year, Wells Fargo’s Azhar Iqbal wrote in a note to clients Wednesday.

“Finally, financial indicators point to a looming recession,” Iqbal said. “The S&P 500 has peaked before recessions with an average lead time of four months over the past few business cycles.

Investors await more economic data this week for clues about what to expect from the Fed, with jobless claims data due on Thursday. The Producer Price Index for November and Preliminary Consumer Confidence data for December are due on Friday.

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Stocks are heading for weekly losses, with the Dow down 2.5%. The S&P and Nasdaq fell 3.5% and 4.5%, respectively.

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