S&P 500 tumbles nearly 4% to new low for the year, closes in bear market territory
The 2022 stock sell-off intensified on Monday with the S&P 500 tumbling to a fresh low for the year and closing in bear market territory as recession fears grew ahead of this week’s key Federal Reserve meeting.
The S&P 500 fell 3.88% to 3,749.63, marking its lowest level since March 2021 and bringing its losses from its January record to more than 21%. The benchmark closed in bear market territory (down more than 20% from its high) after trading there briefly on an intraday basis about three weeks ago. Some on Wall Street say it’s not an official bear market until the index closes there and that’s what happened on Monday. The last time stocks were in a bear market was in March 2020 at the onset of the pandemic.
The Dow Jones Industrial Average dropped 876.05 points, or 2.79%, to settle at 30,516.74, about 17% off its record high. The Nasdaq Composite tumbled 4.68% to close at 10,809.23, bringing its losses for this sell-off to more than 33%.
Major averages hit their lows of the session in the final 30 minutes after a Wall Street Journal report suggested the Fed would consider raising rates by 0.75% on Wednesday, more than the half-point increase currently expected.
There were few places to hide on Monday as Treasury bond prices dropped, pushing the 10-year yield to its largest one-day move since March 2020. Bitcoin was slammed by 15%. At one point during the trading day, every single stock in the S&P 500 was lower. Only five stocks in the benchmark closed the day in the green.