S&P 500

Stocks fell sharply on Monday after a stronger-than-expected inflation report spooked investors. The S&P 500 entered a bear market once again after briefly ...

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The stock market tanked Monday morning, with the S&P 500 falling back into bear market territory as investors nervously look ahead to the Federal Reserve's ...

The majority of last week’s losses came on Friday after hotter-than-expected inflation data spooked markets and raised recession fears, with the Dow plunging nearly 900 points in one day. The benchmark S&P 500 is on track to hit a new low point for 2022, falling back into bear market territory on Monday and down more than 20% from its record high at the start of the year. The stock market tanked Monday morning, with the S&P 500 falling back into bear market territory as investors nervously look ahead to the Federal Reserve’s upcoming policy meeting, with last week’s record-high inflation reading leading to a spike in recession fears.

Bear market – a plummet of 20% or more – comes as investors fret about high inflation and possibility of further rate increases.

The last bear market wasn’t that long ago, in 2020, but it was an unusually short one that lasted only about a month. If the two-year yield tops the 10-year yield, some investors see it as a sign of a looming recession. Bitcoin tumbled more than 18% and dropped below $22,700, according to Coindesk. It’s back to where it was in late 2020 and down from a peak of $68,990 late last year. No one thinks the Fed will stop there, with markets bracing for a continued series of bigger-than-usual hikes. The center of Wall Street’s focus was again on the Federal Reserve, which is scrambling to get inflation under control. Traders now see a 34% probability of such a hike, up from just 3% a week ago, according to CME Group.

Since the modern S&P 500 index began in the late 1920s, the average bear market has translated into a 38% price decline lasting an average of almost 19 ...

1/3/2022 3/9/2009 3/23/2020 10/9/2007 10/9/2002 10/11/1990 10/3/1974 12/12/1961 10/7/1966 2/9/1966 3/6/1937 9/7/1929

"U.S. equity markets are reacting negatively to last week's hotter-than-expected reading for inflation," says Sam Stovall, chief investment strategist at CFRA.

In recent weeks, a growing number of executives have sounded warnings about the future of the U.S. economy. The index that tracks the 500 stocks of mostly the largest U.S. companies. Trillions of dollars, including from retirement portfolios, are invested in index funds that make up the stocks of the S&P 500. Stocks are not the only market getting hammered. The S&P 500 slumped nearly 4%, entering a bear market territory, meaning the broad benchmark index has now dropped more than 20% from its most recent high. Stocks have had a miserable year because of inflation fears.

Wall Street is back in the claws of a bear market as worries about inflation and higher interest rates overwhelm investors.

When the S&P 500 has fallen 20% at a faster clip, the index has averaged a loss of 28%. The biggest decline since 1945 occurred in the 2007-2009 bear market when the S&P 500 fell 57%. That includes two separate days in the middle of the 2007-2009 bear market where the S&P 500 surged roughly 11%, as well as leaps of better than 9% during and shortly after the roughly monthlong 2020 bear market. Many of the best days for Wall Street have occurred either during a bear market or just after the end of one. If you need the money now or want to lock in the losses, yes. But the pain is spreading widely, with retailers signaling a shift in consumer behavior. The risk is the Fed could cause a recession if it raises rates too high or too quickly. Higher rates also make investors less willing to pay elevated prices for stocks, which are riskier than bonds, when bonds are suddenly paying more in interest thanks to the Fed. Market enemy No. 1 is interest rates, which are rising quickly as a result of the high inflation battering the economy. Consumer prices are at the highest level in four decades, and rose 8.6% in May compared with a year ago. The most recent bear market for the S&P 500 ran from February 19, 2020 through March 23, 2020. The Federal Reserve has signalled it will aggressively raise interest rates to try to control inflation, which is the highest in decades.

Ahead of a critical Federal Reserve meeting, disappointing data on inflation has pushed the S&P 500, a broad-based stock index, into bear market territory.

Airlines like United and Delta were down on Monday; so was Airbnb, from 8% to 10%. The fear is this could be a sign people will start scaling back on their plans to travel. The unemployment rate is at 3.6%, which is very close to its pre-pandemic low. Now there is speculation the Fed could hike interest rates by more than that or more times going forward. GURA: Yeah, there continues to be so much geopolitical uncertainty from the war in Ukraine to crackdowns on COVID in parts of Asia. You know, so far, people have continued to spend and jobs are plentiful. GURA: U.S. Treasuries are often a safe haven, but there's also been a sell-off in bonds. But bottom line, no one knows how this is going to play out given persistent high inflation. GURA: Yeah, so the S&P is this broad representation of stocks of the largest companies. And that's just how much pessimism there is among investors about where the U.S. economy is heading because of this current period of high inflation. The reason is raising rates makes borrowing more expensive for everyone. The Fed is fighting high inflation, and it does that by slowing demand. The Fed could tip the U.S. economy into a recession if it hikes interest rates too aggressively. Dave Sekera is the chief U.S. market strategist at Morningstar.

Banks forecast 75 bps Fed hike on June 15; Wall Street 'fear gauge' spikes to near one-month high.

More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. Your support through more subscriptions can help us practise the journalism to which we are committed. "There was some speculation the Fed may speed up their rate rise, perhaps even to a quarter percent at this next meeting, which I would suggest is not enough to be able to really significantly slow down inflation, but all that means is that there's troubled times ahead for the economy." Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. The Fed's interest rate decision is due on June 14-15, with focus on the speed and scale of rate hikes that policymakers believe will be needed to quash red-hot inflation. Declining issues outnumbered advancers by a 20.4-to-1 ratio on the NYSE and by about a 11.3-to-1 ratio on the Nasdaq. At 09:56 a.m. the Dow Jones Industrial Average fell 611.99 points, or 1.95% , to 30,780.80, the S&P 500 lost 96.57 points, or 2.54%, to 3,801.89 and the Nasdaq Composite lost 342.18 points, or 3.02%, to 10,997.85. Wall Street's main stock indexes fell sharply on Monday, with the S&P 500 on track to confirm a bear market on fears that the Federal Reserve's aggressive rate hikes would tip the economy into recession. The benchmark index is more than 20% below its record closing high of Jan. 3, as worries over inflation, rate hikes and the Ukraine war push it into bear market territory for the second time since the pandemic-led rout on Wall Street in 2020.

The bear is growling on Wall Street. Monday's stock market drop officially put the S&P 500 stock index in a bear market, meaning it has declined 20% or more ...

The average S&P 500 decline over the course of those bear markets was more than 35%, according to Ned Davis Research. Michael O’Keeffe, chief investment officer at Stifel, predicts the new bear market will be relatively short-lived. “If we are at or near inflation peak inflation then buying at these levels is going to be positive in the long-term.” "But looking out strategically, based on better valuations and still mostly favorable fundamentals, we think the long-term outlook has brightened quite a bit." Despite Monday’s widespread selloff, McDonald’s and Domino's Pizza were among the few stocks that closed higher. Some Wall Street economists, including from JP Morgan, Barclays, and Jefferies, have revised their predictions to align with that.

The S&P 500 Index sank into a bear market on Monday with investors fearing that the Federal Reserve will need to hike interest rates more aggressively to ...

Among stocks in the S&P 500 consumer discretionary index , down 67% from its high. The cruise ship company's stock slumped more than 10% on Monday. Within the ...

The S&P 500 is now priced at about 17 times expected earnings, which is in line with its average forward PE over the past 10 years, according to Refinitiv data. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com Over two thirds of S&P 500 stocks were down more than 20% from their own 52-week highs as of Monday's close. The S&P 500 has now tumbled about 22% since its Jan. 3 record high close, confirming it has been in a bear market since hitting that high. Register now for FREE unlimited access to Reuters.com

Some big names, such as Halliburton and Exxon Mobil, are slumping on Monday.

Exxon Mobil (XOM), which hit a new all-time high last week, was down 4.5%. Energy stocks were the worst performers in the S&P 500 on Monday, falling 4.5% around midday after dropping as much as 7% during the worst of the morning selloff. Energy Stocks Fall as Much as 7%. They Are Leading the S&P 500 Lower.

Stock futures rose, suggesting U.S. markets were poised for a modest recovery after a rout Monday that sent the S&P 500 into a bear market, while shares in ...

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Futures tied to the S&P 500 gained 0.5% after the broad-market index tumbled 3.9% on Monday. Nasdaq-100 futures climbed 0.7%, suggesting a rise in technology stocks after the opening bell. Dow Jones Industrial Average futures added 0.3%.

- Saks Fifth Avenue:$20 off sitewide + free shipping - Saks Fifth Avenue coupon You may cancel your subscription at anytime by calling Customer Service. Dow Jones Industrial Average futures added 0.3%.

Ahead of a critical Federal Reserve meeting, disappointing data on inflation has pushed the S&P 500, a broad-based stock index, into bear market territory.

Airlines like United and Delta were down on Monday; so was Airbnb, from 8% to 10%. The fear is this could be a sign people will start scaling back on their plans to travel. The unemployment rate is at 3.6%, which is very close to its pre-pandemic low. Now there is speculation the Fed could hike interest rates by more than that or more times going forward. GURA: Yeah, there continues to be so much geopolitical uncertainty from the war in Ukraine to crackdowns on COVID in parts of Asia. You know, so far, people have continued to spend and jobs are plentiful. GURA: U.S. Treasuries are often a safe haven, but there's also been a sell-off in bonds. But bottom line, no one knows how this is going to play out given persistent high inflation. GURA: Yeah, so the S&P is this broad representation of stocks of the largest companies. And that's just how much pessimism there is among investors about where the U.S. economy is heading because of this current period of high inflation. The reason is raising rates makes borrowing more expensive for everyone. The Fed is fighting high inflation, and it does that by slowing demand. The Fed could tip the U.S. economy into a recession if it hikes interest rates too aggressively. Dave Sekera is the chief U.S. market strategist at Morningstar.

Stocks that soared during the pandemic rally have been some of the biggest losers in this year's downturn.

You may cancel your subscription at anytime by calling Customer Service. You will be charged $ + tax (if applicable) for The Wall Street Journal. You may change your billing preferences at any time in the Customer Center or call Customer Service. You will be notified in advance of any changes in rate or terms. Stocks that soared during the pandemic rally have been some of the biggest losers in this year’s downturn, a reversal that signals investors’ concerns over the valuations of many risky assets and the broad outlook for inflation and growth.

Investors use the term "bear market" to describe a deep and sustained market downturn. It's a decline of 20% or more from recent highs.

Bear markets are a periodic feature of the stock market. "It's a shortcut in language around the financial markets that people use," Charlie Fitzgerald III, an Orlando, Florida-based certified financial planner, said of bear markets. It often portends — but doesn't cause — a recession. To that point, Fed policymakers are entertaining the idea of a 75-basis-point rate increase this week. It's more a symbolic psychological hurdle for investors. It's symbolic psychological hurdle for investors that often portends a recession.

Among stocks in the S&P 500 consumer discretionary index, more than 90% are in bear markets, including Etsy, down 77% from its record high, and Carnival Corp, ...

As investors grow increasingly worried about inflation and higher interest rates, Wall Street has fallen into a bear market. The US Federal Reserve bank has ...

The S&P 500 index has decreased by an average of 33 percent during bear markets in the same period. Often, bear markets, or the days following them, see some of the best days for Wall Street. In the middle of the 2007-2009 bear market, for example, there were two separate days when the S&P 500 jumped forward by about 11 percent. Historically, bear markets that occur rapidly tend to be shallower, and stocks have usually taken a little more than eight months to fall into a bear market. However, for those in need of money now, or looking to lock in their losses, the answer is yes. That reversal, with higher yields for more short-term bonds, has typically been seen as an indicator of a recession, although the timeline for such a downturn is less certain. If stocks tend to keep up with profits, higher rates also make the elevated price of stocks less attractive. When the economy manages to avoid recession, that number drops to about 24 percent. Record-low interest rates had made it easier for investors to shift money into less stable assets such as stocks and cryptocurrency, hoping for higher returns due to the riskier nature of the investment. This can help curb inflation, but also comes with the risk of triggering a recession if rates go up too much or too quickly. The primary cause of concern among investors is interest rates, which are ticking steadily upwards to combat high levels of inflation that are hammering the economy. Last month, the Fed indicated that new rate increases are likely to occur in the next several months, and could be as much as double the normal increases. Increasingly volatile changes in the value of stocks have become more common.

Ahead of a critical Federal Reserve meeting, disappointing data on inflation has pushed the S&P 500, a broad-based stock index, into bear market territory.

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The S&P 500 index has now entered a bear market, but the past offers little guidance.

From January 1973 to October 1974, a period of stagflation due to the oil embargo that caused inflation to spike and economic growth to slow, the S&P 500 lost 48.2%. The index has fallen by 21.8% since its peak in early January. Since 1929, there have now been 15 bear markets of varying length and severity.

The S&P 500 fell into a bear market on Monday, down more than 20% from its record high on Jan. 3. Many stocks that soared during the pandemic rally, ...

Investors will be closely watching the Federal Reserve’s policy meeting this week. The S&P 500 fell into a bear market on Monday, down more than 20% from its record high on Jan. 3. Stocks that soared during the pandemic rally have been some of the biggest losers in this year’s downturn.

The S&P 500 Index ended trading on June 13, 2022 down by 21.8% from the high close for the year, thus officially defining a bear market.

Through market close on June 1, 11 of the S&P 500 sectors are down year-to-date (YTD) down so far in 2022. From March 24, 2000 to Oct. 9, 2002 (929 days), the S&P 500 dropped by 49.1%, From Oct. 9, 2007 to March 9, 2009 (517 days), it fell by 56.8%.2 The index is down by 21.8% from its previous closing high, which it reached on January 3, 2022.1 The previous bear market, sparked by the newly unfolding COVID-19 pandemic, ran for 33 days from peak to trough (Feb. 19, 2020 to March 23, 2020), during which time the S&P 500 declined by 33.9%. The two bear markets prior to that were much lengthier and deeper. The S&P 500 is a capitalization-weighted index. - This means the S&P 500 is now in a bear market, normally defined as a drop of 20% or more in a market index. All these stocks have posted larger YTD declines than the S&P 500 as a whole, leading the index down. The six sectors posting year-to-date declines of less than 20% are financials (-19.6%), industrials (-17.1%), health care (-13.9%), materials (-13.8%), consumer staples (-9.5%), and utilities (-5.6%).3 - The S&P 500 Index ended trading on June 13, 2022 down by 21.8% from its previous closing high, which it reached on Jan. 3. - Among the 11 S&P 500 industry sectors, ten are down year-to-date, and four of them by 20% or more. Four sectors are down by 20% or more year-to-date: consumer discretionary (-33.3%), communication services (-31.4%), information technology (-28.5%), and real estate (-24.6%).3 The S&P 500 Index fell below the 20% threshold to be considered a "bear market," at the close of trading on June 13, 2022.

European markets are important to companies in the index. And big gaps in European bond yields threaten the stability of the global economy.

Second, the widening of spreads between European government bond yields threatens the stability of global economy, which makes investors less willing to take... The widening difference between bond yields in different countries within the euro area affects the S&P 500 in two ways. The S&P 500 isn’t skidding into a bear market simply because of the growl of a more aggressive Fed. European bond spreads are pushing the index down, too, a new computer model shows.