Dow drops but narrowly avoids confirming bear market status

Sept 23 (Reuters) – The blue-chip Dow Jones Industrial Common (.DJI)tumbled to its lowest degree since November 2020 on Friday, however narrowly missed ending greater than 20% beneath its Jan. 4 closing document excessive.

A Dow shut beneath 29,439.72 would have confirmed a bear market that started from that document, in accordance with a extensively used definition. learn extra The Dow fell 486.27 factors, or 1.62%, to finish at 29,590.41.

The Dow is the one one of many three principal indexes to not have bear market standing. The S&P 500 (.SPX) notched that grim milestone in June and the Nasdaq (.IXIC) in March.

The renewed promoting strain in markets got here in per week that noticed the U.S. Federal Reserve increase rates of interest by three-quarters of a proportion level for a 3rd straight time and a vow to maintain it going till inflation is underneath management.

It has been a tumultuous yr for Wall Avenue, stricken by worries about Russia’s invasion of Ukraine, an vitality disaster in Europe and the tip of simple cash coverage globally.

The S&P 500 has misplaced 23% this yr and the Nasdaq has shed 31%.

The final time the three indexes pulled again so sharply was in 2020 in the course of the heights of the pandemic selloff.

Heightened fears of a U.S. financial downturn subsequent yr and its impression on company earnings has prompted brokerages to downgrade their year-end targets for the S&P 500. learn extra

(This story refiles to repair typo in headline)

Reporting by Medha Singh in Bengaluru; extra reporting by Caroline Valetkevitch in New York; Modifying by Shounak Dasgupta, Shinjini Ganguli, Maju Samuel and Diane Craft

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