abc.net.au/news/asx-wallstreet-markets-currencies-rates-recession/101446526US stocks resumed their sell-off overnight as new economic data reignited fears of more steep interest rate rises by the US central bank, and the World Bank warned of a global recession.The Dow Jones index fell 0.6pc to 30,962, the S&P 500 lost 1.1pc to 3,901, and the Nasdaq Composite fell 1.4pc to 11,552
Economic data showed retail sales rebounded in August as consumers bought more cars and ate out amid lower gasoline prices.And the US Labor Department said initial claims for state unemployment benefits fell last week to the lowest level since the end of May. "Even though participants agree it'll be a 75-basis point rate hike, it's what the statement adds to previous commentary and what [Chairman Jerome] Powell says in his press conference."Banks and healthcare stocks made gains, but technology and energy stocks led the falls.
In a new report, the bank said the world's largest economies, the US, China and the euro area, had been slowing down and even a "moderate hit to the global economy over the next year could tip it into recession". However, it noted that rate rises by central banks were likely to continue, but that may not be enough to bring inflation down.