us stocks ended a choppy session mostly lower tuesday with the nasdaq composite closing at its lowest in more than two years as the techheavy index and the sp 500 index extended a losing streak to five sessions stocks remain dogged by worries the federal reserves desire to combat rampant inflation with stillhigher borrowing costs will hurt economic activity and crimp corporate earnings this is an awful stock market environment that is grappling with a weakening economy uncertainty over earnings and how long the feds tightening will last and sentiment issues with an extremely risk averse investor psychology said david bahnsen chief investment officer at the bahnsen group a wealth management firm based in newport beach calif with 385 billion in assets under management while we believe a recession is inevitable its impossible to factor this into an actionable stock market view because we dont know how much recession risk is already priced into markets he said in emailed comments there is a significant chance that by the time we are in a recession markets will already be pricing in the recovery as markets are forward looking largecap techrelated shares which had driven the stockmarket rally off the 2020 pandemic lows continued to be hit hard with shares of facebook parent meta platforms inc meta down more than 4 videostreaming giant netflix inc nflx another pandemic highflier was down more than 6 both meta and netflix have dropped more than 60 in the year to date chip stocks were also hammered with the phlx semiconductor index dropping 25 chip stocks started to slide friday with the sox index down 12 since the announcement of widened restrictions on what us chip makers can sell to china potentially disrupting nonus parts of the sector that may have manufacturing sites in china read chip stocks could suffer worst year ever as effects of shortageturnedglut spread the policysensitive 2year treasury yield on tuesday pulled back after rising above 43 near its highest level since 2007 the shortduration benchmark was nearly 400 basis points lower a year ago before the fed embarked on a rate hiking campaign to tackle consumer price rises running at their fastest pace in 40years the 10year treasury yield briefly popped above 4 again in early trading but was at 3924 in recent trade seerobert shiller created an index that shows investors fear of a stock market crash heres what its saying now in addition the bank of england said tuesday that it would expand its daily uk bond purchase operations to include indexlinked gilts the second move this week aimed at trying to calm market volatility volatility in us markets came late in the session as boe gov andrew bailey said pension fund managers had until friday to rebalance signaling the central bank wasnt prepared to extend its emergency operations beyond their planned expiration the boe first stepped in to stabilize the market last month on fears bondmarket volatility could sink pension funds earlier the international monetary fund cut its outlook for economic growth in the united states to 16 this year down from a july forecast of 23 it expects meager 1 us growth in 2023 jpmorgan chase jpm ceo jamie dimon on monday warned additional interest rate rises by the fed will be particularly painful and the sp 500 could fall by another 20 the benchmark is already down 242 so far in 2022 through monday the techheavy nasdaq composite has shed 326 over the same period deep dive the stock market is in trouble thats because the bond market is very close to a crash the thirdquarter corporate earnings reporting season is about to begin also with jpmorgan chase reporting on friday along with citigroup c and morgan stanley ms analysts expect sp 500 index aggregate earnings will grow by 45 for the period though much of this is driven by an expected 63 gain for energy stocks according to refinitiv financials earnings are forecast to fall 16 the market must contend with us producer prices data on wednesday and the consumer prices data on thursday reports that should further impact investors thinking on the feds policy trajectory the dollar has been propelled sharply higher by the feds relatively aggressive ratehiking cycle and the currencys strength is seen as yet another headwind for the earnings of us multinationals the ice us dollar index backed off 02 on tuesday