The Dow Jones fell as recession fears grip Wall Street

Wall Street investors dumped stocks on Tuesday as concerns grew about a possible recession amid record levels of inflation and rising energy prices.

The Dow Jones Industrial Average was down more than 600 points as of 10 a.m. Tuesday while the Nasdaq was down more than 1.1%.

The S&P 500 gave up 1.67% of its value on Tuesday. The index has fallen more than 20 percent since hitting its highest level on Dec. 31.

JPMorgan Chase stock is down 2.5% while Wells Fargo is down 2.7%.

Energy companies saw some of the biggest losses as US oil prices fell 5%. Exxon Mobil shares fell 2.8 percent.

Analysts at Morgan Stanley believe the US economy is in the grip of a severe slowdown as the Russian invasion of Ukraine continues, putting pressure on an already tight oil market.

The global economy is also being hampered by continued supply chain difficulties exacerbated by the lockdowns in China, where the government is pursuing a “zero COVID” strategy.

Michael J. Wilson, chief strategist at Morgan Stanley, said the Federal Reserve’s aggressive moves to curb inflation by raising interest rates could push the economy into recession.

Wilson’s team of researchers wrote in a note obtained by Bloomberg that the market downturn could further slide the S&P index to around 3,000 points — roughly 22% below its current value.

While fears of a recession abound, optimists point to the fact that the labor market remains strong.

Jane Goldman, chief investment officer at Cetera Investment Management, told The Post that current metrics may not tell the whole story.

“It is important to note that the recession data is historically based,” Goldman said.

“In other words, we could be in a slump right now and not know until after the recovery starts.”

Recent analysis from Bloomberg Economics puts the odds of a recession over the next year at 38%.

Model factors in data points such as housing permits, the gap between 10-year and 3-month Treasury yields, and consumer surveys.

“The risk of a recession in early 2023 has risen dramatically,” said Anna Wong, chief US economist at Bloomberg Economics.