Wall St deep in bear market as S&P 500 hits new two-year low

Date:

  • S&P 500 hits lowest point since Nov. 2020
  • Rate sensitive technology, growth stocks return profit
  • Energy stocks among rare winners
  • Indices down: Dow 0.56%, S&P 0.48%, Nasdaq 0.20%

Sept. 27 (Reuters) – Wall Street’s major indices plunged deeper into a bear market on Tuesday as an early rally in equities faltered after Federal Reserve policymakers called for more rate hikes, even at the risk of slowing economic growth.

The benchmark S&P 500 (.SPX) was able to wipe out gains of up to 1.7% by early afternoon trading, reaching lows last seen in late November 2020, raising concerns about how much further stocks should fall before they stabilize. read more

St. Louis Fed President James Bullard called for more rate hikes, while Chicago Fed President Charles Evans said the central bank will need to raise rates by at least another percentage point this year. read more

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Wells Fargo analysts now see the US central bank moving its target range for the Fed fund rate in the first quarter of 2023 to 4.75%-5.00%. read more

“It’s just a continuation of Jerome Powell’s digging in and trying to really let markets, investors and the world know that we’re going to have to keep raising interest rates to get this inflation story that still goes unchecked… it’ll be interesting to watch.” see if markets end in the red today,” said Brandon Pizzurro, director of public investments at GuideStone Capital Management.

Pizzurro also warned of more pain for stocks, saying, “The worst is ahead of us, not behind us.”

Most of the S&P 500’s sector indices fell, with the energy sector (.SPNY) holding on to gains of 1.19%.

Price-sensitive stocks, including Amazon.com Inc, Apple Inc, Microsoft Corp, Meta Platforms Inc (META.O) and Tesla Inc (TSLA.O), are losing early gains.

US 10-year Treasury yields hit their highest level in more than 12 years amid aggressive comments from Fed officials.

At 12:31 a.m. ET, the Dow Jones Industrial Average (.DJI) fell 164.66 points or 0.56% to 29,096.15, the S&P 500 (.SPX) fell 17.49 points or 0.48% to 3,637.55 and the Nasdaq Composite (.IXIC) fell 21.24 points, or 0.20%, to 10,781.68.

Concerns about corporate earnings being hit by rising prices, an economic downturn and higher interest rates have rocked Wall Street for the past two weeks.

Analysts have lowered their earnings estimates for the S&P 500 for the third and fourth quarters and for the full year. For the third quarter, earnings for S&P 500 companies are up just 4.6% year-on-year, compared to the 11.1% growth expected in early July. read more

On the NYSE, bearish issuance outperformed the avant-garde by a 1.29-to-1 ratio. On the Nasdaq, the number of declining issues surpassed it by a 1.01-to-1 ratio.

The S&P index did not record a new 52-week high and 113 new lows, while the Nasdaq recorded 24 new highs and 323 new lows.

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Reporting by Ankika Biswas, Shreyashi Sanyal and Susan Mathew in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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