Wall Street is deep in a bear market as the Standard & Poor’s 500 hit a two-year low

  • The Standard & Poor’s 500 hit its lowest level since November 2020
  • Rate-sensitive technology, growth stocks retract gains
  • Energy stocks among rare gainers
  • Indices down: Dow 0.56%, S&P 0.48%, Nasdaq 0.20%

(Reuters) – Wall Street’s main indexes sank deeper into a bear market on Tuesday as an early rally in stocks faltered after Federal Reserve policymakers called for more interest rate hikes even at the risk of slowing economic growth.

S&P 500 . Standard (.SPX) It erased gains of as much as 1.7% in early afternoon trading to hit lows seen in late November 2020, leaving investors concerned about how much additional shares will drop before settling. Read more

Louis Fed President James Bullard made the case for further rate hikes, while Chicago Fed President Charles Evans said the central bank will need to raise rates by at least another percentage point this year. Read more

Register now to get free unlimited access to Reuters.com

Analysts at Wells Fargo now see the US central bank raising the target range for the federal funds rate to 4.75%-5.00% by the first quarter of 2023. Read more

“It’s just a continuation of Jerome Powell digging around and trying to let the markets and investors and the world know that we’re going to have to keep raising prices to get this inflation story still unchecked… It’s going to be very interesting to find out what’s going on,” said Brandon Pizzoro, Director of Public Investments at GuideStone Capital Management. If the markets were to end in the red today.

See also  Labor Council official says Amazon hears it could upend New York union vote

Petzuru also warned of further suffering for stocks and said: “The worst is ahead, not behind us.”

Most of the S&P 500 sector indices turned lower, with the energy sector (.SPNY) Clinging to a 1.19% gain.

Price sensitive stocks including Amazon.com Inc, Apple Inc, Microsoft Corp and Meta Platforms Inc (META.O) and Tesla Inc (TSLA.O)Getting rid of early gains.

The benchmark 10-year US Treasury yield touched its highest level in more than 12 years amid hawkish comments from Federal Reserve officials.

At 12:31 p.m. ET, the Dow Jones Industrial Average (.DJI) The index fell 164.66 points, or 0.56%, to 29,096.15 points, the Standard & Poor’s 500 (.SPX) The index fell 17.49 points, or 0.48%, to 3,637.55 points, and the Nasdaq Composite Index (nineteenth) It was down 21.24 points, or 0.20%, to 10,781.68 points.

Concerns about corporate earnings being hit by rising prices, an economic recession, and rising interest rates have rattled Wall Street in the past two weeks.

Analysts have lowered their earnings forecasts for the Standard & Poor’s 500 Index for the third and fourth quarters and for the full year. For the third quarter, earnings for S&P 500 companies are expected to rise just 4.6% year over year, compared to the 11.1% expected growth at the beginning of July. Read more

Declining issues outnumbered applicants by 1.29 to 1 on the New York Stock Exchange. Advance issues outnumbered losers by 1.01 to 1 on the Nasdaq.

The S&P recorded no new 52-week high and 113 new low, while the Nasdaq posted 24 new highs and 323 new lows.

See also  Boeing bids farewell to the "Queen of the Sky" by delivering the last 747 aircraft

Register now to get free unlimited access to Reuters.com

Additional reporting by Ankika Biswas, Shrayachi Sanyal and Susan Mathew in Bengaluru; Editing by Shunak Dasgupta and Arun Koyor

Our criteria: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published. Required fields are marked *