S&P 500 enters bearish market, what else is happening in the stock market today
The stock market tumbled again Monday—now falling into bear market territory.
Bond yields jumped to new heights as fears about Federal Reserve rate hikes persist.
In midday trading, the Dow Jones Industrial AverageDJIA –2.16% fell 581 points, or
1.9%, while the S&P 500SPX –3.02% dropped 2.7%, and the Nasdaq Composite
COMP –3.69% slumped 3.6%. This comes on top of declines last week, with the S&P 500 falling 6.3% from Tuesday’s close to Friday’s close.
The stock market has now fallen back to previous lows, which are in bear market
territory, defined as a larger than 20% fall. The S&P 500 is trading just below 3800. It
had fallen to just above that level on May 20, before bouncing back for a short period. If the index closes below 3837, it will have closed in bear market territory.
“Risk appetite globally has been hammered by a combination of resumed inflation fear and the presumed Fed response to it,” wrote Bespoke Investment Group strategists.