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Wall Street ends lower, Dow confirms bear market

Economy Sep 26, 2022 06:46PM ET
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© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 7, 2022. REUTERS/Brendan McDermid
 
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By Noel Randewich

(Reuters) - Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve's aggressive campaign against inflation could throw the U.S. economy into a sharp downturn.

After two weeks of mostly steady losses on the U.S. stock market, the Dow Jones Industrial Average confirmed it has been in a bear market since early January. The S&P 500 index confirmed in June it was in a bear market, and on Monday it ended the session below its mid-June closing low, extending this year's overall selloff.

With the Fed signaling last Wednesday that high interest rates could last through 2023, the S&P 500 has relinquished the last of its gains made in a summer rally.

Graphics: Dow Jones Industrials bear markets - https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgrmygpb/Pasted%20image%201664218594467.png

"Investors are just throwing in the towel," said Jake Dollarhide, Chief Executive Officer of Longbow Asset Management in Tulsa, Oklahoma. "It's the uncertainty about the high-water mark for the Fed funds rate. Is it 4.6%, is it 5%? Is it sometime in 2023?"

Confidence among stock traders was also shaken by dramatic moves in the global foreign exchange market as sterling hit an all-time low on worries that the new British government's fiscal plan released Friday threatened to stretch the country's finances. [MKTS/GLOB]

That added an extra layer of volatility to markets, where investors are worried about a global recession amid decades-high inflation. The CBOE Volatility index, hovered near three-month highs.

The Dow is now down 20.5% from its record high close on Jan. 4. According to a widely used definition, ending the session down 20% or more from its record high close confirms the Dow has been in a bear market since hitting its January peak.

The S&P 500 has yet to drop below its intra-day low on June 17. It is down about 23% so far in 2022.

In Monday's session, the Dow Jones Industrial Average fell 1.11% to end at 29,260.81 points, while the S&P 500 lost 1.03% to 3,655.04.

The Nasdaq Composite dropped 0.6% to 10,802.92.

Ten of 11 S&P 500s sector indexes fell, led by 2.6% drops in real estate and energy.

Gains in Amazon (O:AMZN) and Costco Wholesale Corp (NASDAQ:COST) helped limit losses in the Nasdaq.

Shares of casino operators Wynn Resorts (NASDAQ:WYNN), Las Vegas Sands (NYSE:LVS) Corp and Melco Resorts & Entertainment (NASDAQ:MLCO) jumped between 11.8% and 25.5% after Macau planned to open to mainland Chinese tour groups in November for the first time in almost three years.

Volume on U.S. exchanges was 11.9 billion shares, compared with the 11.2 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 5.37-to-1 ratio; on Nasdaq, a 2.31-to-1 ratio favored decliners.

The S&P 500 posted no new 52-week highs and 120 new lows; the Nasdaq Composite recorded 16 new highs and 594 new lows.

Wall Street ends lower, Dow confirms bear market
 

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Comments (41)
Stephen Fa
Stephen Fa Sep 27, 2022 12:28PM ET
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Biden bear market
ShoreInvesting DotCom
ShoreInvesting DotCom Sep 26, 2022 8:08PM ET
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Invest in DRV to bet against real estate !!
paturi naveen
paturi naveen Sep 26, 2022 7:41PM ET
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I am not bothered about Republicans,Democrats,Mutual Funds,and their managers,and HNW Individuals,with big salaries,cars,house etcbut about those investors having not much savings,and most of the savings is invested in Market and Mutual Funds,exit with a minor loss,keep it all cash,your savings are for the rainy day which will be handy,otherwise by Fed rate hikes ,market will fall more and savings value will diminish and not help you much in the hard times,like your umbrella with holes will still you get sick with fever,and everyone will be healthy,but these people.
Joe Rizzuto
Joe Rizzuto Sep 26, 2022 7:41PM ET
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stfu
Mark Stuesse
Mark Stuesse Sep 26, 2022 4:55PM ET
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Biden flawed approach to Oil production and $5 a gallon gas prices started this issue a year ago. We are just now seeing the result of that. My company has seen the impact in trucking cost nearly doubling which in turn trickles down to the cost of everything. It will take another year to recover if fuel prices ever recede. Obama did the same thing when he got in office with similar results.
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First Last
First Last Sep 26, 2022 4:55PM ET
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lakes Tenn   You are so dense.  I am pointing out production now is higher than production at earlier points in Biden's  term.  Natural gas-wise, production now is higher than at ANY other points in history, aka ATH.  This contradicts retrumplican narratives.
First Last
First Last Sep 26, 2022 4:55PM ET
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Brad Albright   You might be right.  I am hoping lakes is intellectually-changed instead.
Stephen Fa
Stephen Fa Sep 26, 2022 4:55PM ET
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B1ble Brad is a modern day Pharisee.
First Last
First Last Sep 26, 2022 4:55PM ET
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Stephen Fa   So you're calling Brad an Orthodox Jew?
First Last
First Last Sep 26, 2022 4:55PM ET
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Stephen Fa  So are you calling Brad an Orthodox or ultra-Orthodox Gew?
lakes Tenn
lakes Tenn Sep 26, 2022 4:41PM ET
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Thursdays GDP negative or positive?
Stephen Fa
Stephen Fa Sep 26, 2022 4:41PM ET
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Bidown
Chad Richer Than You
Chad Richer Than You Sep 26, 2022 4:09PM ET
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As "sh"it" hits the fan
Stan Smith
Stan Smith Sep 26, 2022 3:18PM ET
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Guess they changed the definition of 'Recession" again...
Go DaBoys
Go DaBoys Sep 26, 2022 3:13PM ET
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Blaming Biden is just purely bringing partisan politics to this board. How is he responsible for the supply chain problems that are still severe in many areas and the lack of workers after many of the elderly decided to move their retirement up after the pandemic. We've had an aging workforce for awhile now so this was already coming. The pandemic's affects will not end overnight and to blame whatever administration is in office when it hits is just plain playing partisan politics. You have high product costs combined with higher wage costs and somehow Biden is responsible for this? Both of the recent administrations signed stimulus bills with Trump signing 2 and Biden signing 1.
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First Last
First Last Sep 26, 2022 3:13PM ET
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Mad Max   Since Hunter didn't have daddy appoint him into gov't, he's not relevant.
Mad Max
Mad Max Sep 26, 2022 3:13PM ET
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I beg to differ, all family members are relevant when discussing the presidency regardless of being in government or not. crack head on the board of an energy company he's not qualified for with questions about how he got there or daddy's boy/girl who was appointed to an advisory role in government with no relevant experience makes no difference to me. but sure we can exclude them all and just talk about Beavis and Buthead, I'll let you decide which one is which as it doesn't matter to me they're both bad for the county at this point
First Last
First Last Sep 26, 2022 3:13PM ET
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Mad Max   For me, if I'm not a shareholder of that energy company, I got more important things to concern me.  That energy company's board and shareholders have the responsibility for its own corporate governance.  If I'm a citizen of a country and Hunter is pulling levers of my gov't's powers, then I'd be interested.
lakes Tenn
lakes Tenn Sep 26, 2022 3:13PM ET
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first hunter is more relevant because the Biden family is profiting from policies made by the Biden administration. his daughter was the only kid in the White House as an unpaid adviser. please stop getting your info from CNN
First Last
First Last Sep 26, 2022 3:13PM ET
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lakes Tenn   None of Biden's daughters are in his Admin.
Buy And Sell
Buy And Sell Sep 26, 2022 2:45PM ET
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Start selling now or go broke...
mohamed sulibi
mohamed sulibi Sep 26, 2022 2:45PM ET
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why ?
Warm Camp
Warm Camp Sep 26, 2022 2:14PM ET
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Biden’s stagflation. Elections have consequences.
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First Last
First Last Sep 26, 2022 2:14PM ET
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Stephen Fa   More accurate than "Biden, Biden, Biden!"
Stephen Fa
Stephen Fa Sep 26, 2022 2:14PM ET
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Jan never said that in Brady Bunch youngster
First Last
First Last Sep 26, 2022 2:14PM ET
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Stephen Fa   How old are you!?
lakes Tenn
lakes Tenn Sep 26, 2022 2:14PM ET
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first, do you know what the reserve currency is? as in flation hits our shores in is significantly more problematic for those that need to trade in dollars, which causes a bigger snowball, because as dollars are used as a safe haven, their currency becomes worth less and creates greater inflation
Brad Albright
Brad Albright Sep 26, 2022 2:14PM ET
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Get back in you Qave, kook.
 
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