S&P 500 falls below June low, Dow on track to enter bear market

by William Watts

Global stocks fall on fears of recession by central banks

Major US stock indexes were trading below their June lows on Friday, with the blue-chip Dow Jones Industrial Average on track to enter a bear market, capping an ugly week for global equities as investors Central banks in an effort to raise interest rates sharply reacted to high inflation.

The Dow Jones Industrial Average was trading down 765 points, or 2.5%, at 29,312 on Friday afternoon, June 17 from its low of 29,888.78. A closing at or below 29,439.72 would mark a 20% drop close to the DJIA’s record of 36,799.65 set on January 4, meeting the widely used definition of a bear market.

The bigger question, however, remains around the broader S&P 500 index and the ability of the more closely followed large-cap benchmark to close at 3,666.67 on June 16 or take it below its June intraday low of 3,637. The S&P 500 was down 102 points, or 2.7%, at 3,656.

Global stock markets fell sharply on Friday, with US stocks falling sharply. The Federal Reserve made another major interest rate hike earlier this week and indicated it would drive higher rates to market participants than previously expected. Several other global central banks also hiked rates this week, underscoring investor concerns about the economic outlook.

WATCH: The Fed will endure the recession, and 5 other things we learned from Powell

-William Watts

(END) Dow Jones Newswires

09-23-22 1438ET

Copyright (c) 2022 Dow Jones & Company, Inc.

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