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Stock market turning into Bear Market
The Dow's decline of 329.60 points, its fifth down trading day, put it into its first bear market as defined on Wall Street's pretext as a drop of 20% or more from a recent high--since the early days of the pandemic.
The negative sentiment continued as traders worry about rising interest rates, the Russia-Ukraine war and uncontrolled inflation in many countries.
The S&P 500 fell 38.19 points, hitting a new 2022 low. The Nasdaq Composite slipped to 0.6%.
Central Banks around the world are trying to control inflation by tightening monetary policy. The Bank of England has said it will "not hesitate" to hike interest rates to curb inflation after the pound fell to a record low against the US dollar. Last week, the Fed offered up another supersize rate increase sparked fresh concerns among already nervous investors.
The Fed's higher rates affecting all corners of the economy. Mortgage rates are high and cooled the housing market. Higher interest rates have strengthned US dollar further. High energy prices in Europe have introduced more uncertainty for investors. The UK relies on investment flows from abroad to finance its trade deficit, which is likely to widen this winter due to the cost of importing natural gas.
Stock markets outside the US braodly retreated. The Stoxx Europe 600 fell 0.4% pulled down by utility companies and UK home builders. Asian markets fell. The Shangai Composite Index lost 1.2% and Japan's Nikkei 225 fell 2.75%.