Wall Street plunges as Dow confirms bear market

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Wall Street plunges as Dow confirms bear market

On Monday, all three major indices of Wall St. fell across the board, skidding deeper into red inks, as investors’ fret over a growing likelihood of a recession in the United States appeared to have mounted further. On top of that, in the day’s sharp tottering in all three major indices in the Wall Street came forth just a couple of days after S&P Global had slashed its S&P 500 growth forecast for 2022 by 16 per cent, adding to further worries.

Bucking the market trend, casino shares’ prices jumped as Macau had issued a statement earlier in the day saying that the city of Casinos would allow tour groups after nearly three years. In tandem, trade-sensitive Dow had confirmed a bear market on Monday, as it fell over 20 per cent from its most-recent peak hit on early-January.

S&P 500 confirmed a bear market back in June this year. Meanwhile, addressing that investors are getting increasingly worried that the US Fed might hike its benchmark borrowing cost to 5.0 per cent as early as by early-2023, Long Asset Management CEO, Jake Dollarhide said, “Investors are just throwing in the towel.

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?”

Wall St. falls as Dow confirms bear market

Citing statistics, in the day’s Wall St. wind-down, trade-sensitive Dow fell 1.11 per cent to 29,260.81, while Wall Street bellwether S&P 500 shed 1.03 per cent to 3,655.04 with real estate and energy sub-indices falling more than a whopping 2.4 per cent.

Besides, tech-heavy Nasdaq had lost as much as 0.6 per cent to round off the session at 10,802.92.