US stocks slip after 2 consecutive gains as investors weigh recession signals

• US stocks slipped following two consecutive winning days as the 10-year Treasury yield climbed back above 3%.
• Oil shot past $120 a barrel, and the UAE said prices are nowhere near their peak.

US stocks dropped Wednesday following two consecutive positive trading days, as bond yields climbed amid recession fears.

The sell-off came as the OECD cut its global growth forecasts for this year and next year, following a similar downgrade from the World Bank on Tuesday.

Meanwhile, investors are digesting profit warnings from the likes of Target and others in the consumer discretionary sector which may see further cuts to estimates.

Here's where US indexes stood as the market opened 9:30 a.m. on Wednesday:

• S&P 500: 4,138.25, down 0.54%

• Dow Jones Industrial Average: 32,981.99, down 0.60% (198.15 points)

• Nasdaq Composite: 12,123.29, down 0.43%

Billionaire investor Ray Dalio said that stagflation will force the Fed to slash interest rates by 2024.

"We are in a tightening mode that can cause corrections or downward moves to many financial assets, the founder and co-CIO of Bridgewater Associates told the Australian Financial Review. "The pain of that will become great and that will force the central banks to ease again, probably somewhere close to the next presidential elections in 2024."

Roku surged 7% Wednesday after Insider reported internal speculation that Netflix may acquire the streaming platform.

As inflation pressures rise, retail investors are at their most bullish ever on gold despite the strength of the dollar this year. Typically gold and a strengthening dollar share an inverse relationship.

But Michael Burry, the famed "Big Short" investor, argued that the dollar is only strong relative to its currency rivals, and that inflation is eroding the US currency's buying power.

Meanwhile, Ken Griffin's Citadel Securities is reportedly creating a cryptocurrency trading marketplace in an effort to increase liquidity. The firm has been hiring executives to lead the efforts, Coindesk reports.

Overseas, Russia is getting a boost in revenue despite EU sanctions because Moscow is sending more oil to Asia as China and India continue to snap up cheap barrels. Still, the EIA said in its monthly report Tuesday that an EU ban on seaborne imports means Russian oil production could slide 18% by 2023.

The United Arab Emirates' energy minister said that oil prices are nowhere near their peak, as China has yet to fully ease COVID restrictions, which means demand is still not at its highest point.

Oil jumped, with West Texas Intermediate up 1.28% to $120.95 a barrel. Brent crude, the international benchmark, moved up 1.23% to $122.04 a barrel.

Gold edged higher 0.162% to $1,855.20 per ounce. The 10-year yield rose 4 basis points to 3.01%.

Bitcoin slipped 2.17% to $30.131.51.