Dow drops but narrowly avoids confirming bear market status
Stock Markets 20 hours ago (Sep 23, 2022 05:30PM ET)
© Reuters. FILE PHOTO: A screen charts the Dow Jones Industrial Average during the trading day on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 24, 2022. REUTERS/Brendan McDermid
(Fixes typo in headline)
By Medha Singh
(Reuters) -The blue-chip tumbled to its lowest level since November 2020 on Friday, but narrowly missed ending more than 20% below its Jan. 4 closing record high.
A Dow close below 29,439.72 would have confirmed a bear market that began from that record, according to a widely used definition. The Dow fell 486.27 points, or 1.62%, to end at 29,590.41.
The Dow is the only one of the three main indexes not to have bear market status. The notched that grim milestone in June and the Nasdaq in March.
The renewed selling pressure in markets came in a week that saw the U.S. Federal Reserve raise interest rates by three-quarters of a percentage point for a third straight time and a vow to keep it going until inflation is under control.
It has been a tumultuous year for Wall Street, plagued by worries about Russia’s invasion of Ukraine, an energy crisis in Europe and the end of easy money policy globally.
The S&P 500 has lost 23% this year and the Nasdaq has shed 31%.
The last time the three indexes pulled back so sharply was in 2020 during the heights of the pandemic selloff.
Heightened fears of a U.S. economic downturn next year and its impact on corporate profits has prompted brokerages to downgrade their year-end targets for the S&P 500.