December 3, 2022

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The S&P 500 ended Tuesday lower after hitting a new low in a bear market

The S&P 500 ended Tuesday lower after hitting a new low in a bear market

The S&P 500 plunged deeper into a bear market on Tuesday after hitting a new low in 2022, while the benchmark 10-year Treasury yield continued to climb to levels not seen in at least a decade.

The broader market index dropped as low as 3623.29 during the session breaking below the previous bear market low of 3636 set in mid-June. It closed down 0.21% at 3647.29.

Meanwhile, the Dow Jones Industrial Average fell 125.82 points, or 0.43%, to 29,134.99 — giving up a gain of nearly 400 points earlier in the day. The Nasdaq Composite rose 0.25% to 10,829.50.

The S&P 500 is now 24.3% off its record set in January, while the Dow is down 21.2% from its all-time high. The Nasdaq has fallen more than 33% since hitting a record high in November.

The 10-year Treasury yield gained nearly 9 basis points at 3.972% as it continued to climb nearly 4%. The two-year rate was little changed around 4.31% after falling in early trade.

The British pound’s rally also faded, with sterling trading just 0.4% higher at around $1.07 against the dollar. The pound earlier rose more than 1% against the US dollar, in an attempt to rebound from an all-time low hit earlier in the week.

said Art Hogan, chief markets strategist at B. Riley Financial.

“We remain concerned that the Fed is going to overdo it and push the economy into recession,” Hogan added.

Stocks initially got a boost after Chicago Federal Reserve Chairman Charles Evans He indicated some concerns About the central bank raising interest rates too quickly to fight inflation. His comments contrasted with several Federal Reserve officials who recently expressed their reluctance to support the central bank’s tough stance against price hikes.

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Moves come next Five consecutive days of losses for shares, with the S&P 500 closing at its lowest level since 2020. The Dow Jones fell more than 300 points on Monday, putting it in a bear market after dropping more than 20% from its record high. The 30 stock average also hit its lowest closing level since late 2020.