S&P 500 slips near bear market territory as stocks continue to lose

S&P 500 slips near bear market territory as stocks continue to lose

US stocks fell deeper into the red on Thursday after markets failed to recover from their worst day since June 2020. The declines lead to a continuation of the recent stock sell-off sparked by fears that the Federal Reserve will raise interest rates to rein in persistent inflation levels that It may stimulate an economic slowdown.

The S&P 500 fell 0.6% to approach bear market territory, defined as a close of 20% from its recent high. After posting its biggest drop in two years in the last session, the index is down almost 19% from its all-time high on January 3 and should close below 3,837.24 to officially enter a bear market. The Dow shed 230 points after dropping nearly 1,200 points in the last session to close at its lowest level since March 2021. The Nasdaq Composite Index fell 0.3% after swinging between gains and losses in daily trading.

“Investors should get used to negative moves and upsides in stocks, which are common in times of massive uncertainty,” Ryan Billangers, director and founder of Claro Advisors, said in a note. “We expect the stock market to trade near or into bear territory for the coming months, creating a disappointing range-limited market that will test the will of many investors.”

The losses come on the heels of a set of weaker-than-expected quarterly results from major US retailers that have raised investor concerns about the losses inflationary pressures may take on corporate profits and consumer spending.

Target (TGT) lost a quarter of its market value Wednesday after the company reported operating margin well below analyst estimates and cut its full-year forecast, citing higher transportation costs due to higher fuel prices.

Quincy Crosby, chief equity strategist at LBL, said in an email on Wednesday. “Consumers certainly keep spending, but many large retailers are unable to get past the higher labor costs and higher prices caused by the still-constrained supply chain.”

Target’s report also follows a profit loss and an expected drawdown earlier this week from Walmart (WMT), news that has sent the retail giant’s shares down 17% in the past two days, marking the stock’s worst two-day sell-off since 1987.

“It appears that safe haven stocks, commodities like Target and Walmart, are not immune,” Jack Aplin, CIO at Cresset Capital, told Yahoo Finance Live on Wednesday. “Investors look at these stocks and think they were safe havens, and now we see that maybe they weren’t.”

The declines in stock markets on Wednesday follow hawkish comments from Federal Reserve Chair Jerome Powell at the Wall Street Journal conference earlier this week that strongly signaled the possibility of a 50 basis point rate hike at upcoming central bank policy setting meetings.

Uncertainty about the pace and scale of the Fed’s rate hike cycle has added to year-on-year pressure on stock markets as investors worry about the potential for an economic slowdown if the central bank acts too aggressively. In 2022 so far, the S&P 500 has fallen about 18% from its all-time high on January 3, once again walking into bear market territory, while the Dow has fallen about 14% over the same period and the Nasdaq has fallen deeper. In a bear market – 28% below the record closing price in November.

“President Powell’s hawkish comments yesterday afternoon and Target’s profit margins slumped this morning were too much for the market to handle,” said Chris Zacarelli, CIO of Independent Advisor Alliance, Chris Zacarelli in an email note. “Today’s short selling shows that growth fears continue to engulf investors and this year the Federal Reserve is not supporting them.”

4:00 p.m. ET: S&P 500 slips near bear market territory as stocks extend losses

Here are the main moves in the markets at Thursday’s close:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -22.96 (-0.59%) to 3900.72

  • dow (^ DJI): -236.81 (-0.75%) to 31253.26

  • Nasdaq (^ ninth): -29.66 (-0.26%) to 11388.50

  • raw (CL = F.): + $2.03 (+1.85%) to $111.62 per barrel

  • He went (GC = F.): + $25.50 (+1.40%) to $1,841.40 per ounce

  • Treasury for 10 years (^ degeneration): -3.1 basis points to produce 2.8550%

2:18 p.m. ET: Twitter tells employees that the Musk deal still stands

Twitter Inc. executives told (TWTR) employees on Thursday announced that a presentation from the CEO of Tesla Inc. (TSLA) Elon Musk will continue as expected, according to a report from Bloomberg News.

Twitter shares are up 2.14% to $37.64 + 0.79 as of 2:11 PM ET.

The social media platform’s top leaders have said the $44 billion deal that Musk will receive is going ahead as planned and that the company will not renegotiate the agreed-upon price of $54.20 per share.

The news came just days after Musk said the deal was “temporarily on hold” after pending details backing accounts that fake accounts account for less than 5% of users the company had previously said.

Elon Musk’s Twitter profile is seen on a smartphone placed on the Twitter logos printed in this illustration taken on April 28, 2022. REUTERS / Dado Ruvic / Illustration

11:51 a.m. ET: Nasdaq turns positive as technology shares pare earlier losses

Here are the major moves in the markets as of 11:51 a.m. ET:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): +9.84 (+0.25%) to 3,933.52

  • dow (^ DJI): -98.15 (-0.31%) to 31391.92

  • Nasdaq (^ ninth): +129.15 (+13%) until 11547.31

  • raw (CL = F.): +0.90 dollars (+0.82%) to 110.49 dollars per barrel

  • He went (GC = F.): + $27.70 (+1.53%) to $1,843.60 per ounce

  • Treasury for 10 years (^ degeneration): -6.5 basis points to produce 2.8210%

9:34 a.m. ET: Stocks continue lower as concerns mount over economic slowdown

Here are the major moves in the markets as of 9:34 a.m. ET:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -14.27 (-0.36%) to 3,909.41

  • dow (^ DJI): -313.94 (-0.63%) to 32340.65

  • Nasdaq (^ ninth): +27.67 (+0.20%) to 11445.83

  • raw (CL = F.): +1.42 dollars (+1.26%) to 113.82 dollars per barrel

  • He went (GC = F.): – $8.10 (-0.45%) to $1,810.80 per ounce

  • Treasury for 10 years (^ degeneration): +1.4 basis points to produce 2.9820%

8:34 a.m. ET: US jobless claims unexpectedly rose to a four-month high

Claims for unemployment insurance rose slightly in recent weekly data but remained low, with increases primarily notable in a few states, including California and Kentucky.

The Labor Department’s latest weekly jobless claims report showed that 218,000 claims were filed in the week ending May 14, which is more than 200,000 economists surveyed by Bloomberg.

Weekly claims continued to hover near multi-decade lows. However, the rally comes as concerns about an economic slowdown grow among market participants.

Christopher S. said: Robke, chief economist at FWDBONDS, said in an email note: “Fed rate hikes may end in a hurry if layoffs continue to escalate.” “There is a noticeable and worrying upward trend in layoffs since 166,000 in the week of March 19 which is an increase of more than 30%.

7:00 a.m. ET: S&P 500, Dow and Nasdaq futures point to more losses as selling intensifies

Here are the main moves in futures trading early Thursday:

  • S&P 500 futures contracts (ES = F.): -39.00 (-0.99%) to 3883.75

  • Dow futures contractsYM = F.): -296.00 (-0.94%) to 31144.00

  • Nasdaq futures contractsNQ = F.): -123.25 (-1.03%) to 11812.25

  • raw (CL = F.):- $1.46 (-1.33%) to $108.13

  • He went (GC = F.):- $11.60 (-0.64%) to $1,827.50 per ounce

  • Treasury for 10 years (^ degeneration): -8.2 basis points to produce 2.8860%

6:17 PM ET Wednesday: Futures open slightly lower after heavy selling resumes on Wall Street

Here is where the stock futures were extended on Wednesday:

  • S&P 500 futures contracts (ES = F.): -5.00 (-0.13%) to 3917.75

  • Dow futures contractsYM = F.): -35.00 (-0.11%) to 31405.00

  • Nasdaq futures contractsNQ = F.): -28.50 (-0.40%) to 11,907.50

  • raw (CL = F.):- $0.50 (-0.46%) to $109.09

  • He went (GC = F.):- $0.90 (-0.50%) to $1,815.00 per ounce

  • Treasury for 10 years (^ degeneration): -8.2 basis points to produce 2.8860%

NEW YORK, NY - May 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City.  The Dow Jones Industrial Average declined in morning trading as investors remained concerned about inflation and other global issues.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NY – May 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average declined in morning trading as investors remained concerned about inflation and other global issues. (Photo by Spencer Platt/Getty Images)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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2022-05-19 19:09:47

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