© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., September 7, 2022. REUTERS/Brendan McDermid
By Noel Randewich and Shreyashi Sanyal
(Reuters) – Wall Street slipped further into bearish territory on Monday as investors feared the Federal Reserve’s aggressive campaign against inflation could send the U.S. economy into a sharp slowdown.
After two weeks of mostly steady losses in the US stock market, the stock market was on the verge of confirming that it had been in a bear market since early January. The confirmed in June that it was in a bear market, and it was on track to end the session below its mid-June closing low, extending this year’s overall selloff.
As the Fed signaled last Wednesday that high interest rates could last through 2023, the S&P 500 gave up the last of its gains made during a summer rally.
“Investors are just throwing in the towel,” said Jake Dollarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma. “It’s the uncertainty about the peak of the federal funds rate. Is it 4.6%, is it 5%? Is it somewhere in 2023?”
Stock traders’ confidence was also shaken by dramatic moves in the global currency market as sterling hit an all-time low amid fears the UK government’s new budget plan released on Friday threatens to stretch finances from the country. [MKTS/GLOB]
This added an extra layer of volatility to markets worried about a global recession amid decades-high inflation. The , hovered near three-month highs.
The Dow was down 20.4% from its record close on Jan. 4. According to a widely used definition, ending the session down 20% or more from its record close would confirm that the Dow has been in a bear market since hitting its January level. peak.
In afternoon trading, the Dow Jones Industrial Average fell 1% to 29,294.44 points, while the S&P 500 lost 0.81% to 3,663.4.
The fell 0.18% to 10,847.87.
Shares of casino operators Wynn Resorts (NASDAQ:), Las Vegas Sands (NYSE:) Corp and Melco Resorts & Entertainment (NASDAQ:) jumped 12% to 25% after Macau planned to open up to mainland Chinese tour groups in November for the first time in nearly three years.
Falling issues outnumbered rising ones on the NYSE by a ratio of 4.83 to 1; on the Nasdaq, a ratio of 2.07 to 1 favored the decliners.
The S&P 500 posted no new 52-week highs and 111 new lows; the Nasdaq Composite recorded 12 new highs and 505 new lows.