Stocks plunged deeper into a bear market on Tuesday, as the S&P 500 hit a new low in 2022 and the benchmark 10-year Treasury yield continued to climb to levels not seen in at least a decade.
The S&P 500 was trading down 0.7%, breaking the intraday low of a previous bear market at 3,636 set in mid-June. The Dow Jones Industrial Average fell 200 points, or 0.6%, giving up an earlier gain of about 400 points. The Nasdaq Composite Index lost 0.4%.
The S&P 500 is now 24.7% below its record set in January, while the Dow is down 21.4% from its all-time high. The Nasdaq has fallen more than 33% since hitting a record high in November.
The 10-year Treasury rose nearly 9 basis points at 3.96%, bouncing back from levels seen earlier today. The two-year interest rate was flat at 4.308%.
The British pound’s rally also faded, with sterling gaining just 0.2% at around $1.07 against the dollar. The pound earlier rose more than 1% against the US dollar, in an attempt to rebound from an all-time low hit earlier in the week.
said Art Hogan, chief market strategist at B. Riley Financial.
“We remain concerned that the Fed is going to overdo it and push the economy into recession,” Hogan added.
Stocks initially got a boost after Chicago Federal Reserve Chairman Charles Evans He indicated some concerns About the central bank raising interest rates too quickly to fight inflation. His comments stood in contrast to a large number of Federal Reserve officials who have recently reiterated a hardline stance against rate hikes.
Moves come next Five consecutive days of losses for shares, with the S&P 500 closing at its lowest level since 2020. The Dow Jones fell more than 300 points on Monday, putting it in a bear market after dropping more than 20% from its record high. The 30 stock average also hit its lowest close since late 2020.
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