The S&P 500 lost 149.91 points, or 3.9%, to 3,750.95 points, while The Nasdaq Composite fell 526.82 points, or 4.7%, to 10,813.20. The Dow Jones Industrial Average fell 857.70 points, or 2.7%, to 30,535.09.
The Nasdaq, which suffered its fourth consecutive decline, confirmed that it was in bearish territory on March 7. It has lost about 30% this year.
Meanwhile, the benchmark S&P, which also accumulated four consecutive days of declines, registered a retracement of more than 20% from its most recent record high to confirm that a bear market began on January 3, according to a commonly used definition.
All major S&P sectors fell sharply, with only about 10 components of the S&P 500 in positive territory on the day.
Markets are under pressure this year as Rising prices, including a surge in oil values due in part to the war in Ukraine, have put the Fed on track to take strong action to tighten monetary policy.
The Fed is scheduled to make its next monetary policy announcement this Wednesday and investors will be highly focused on any clue as to how aggressive the central bank intends to be in raising rates.
Market heavyweights such as Apple, Alphabet, Microsoft and Amazon.com were the biggest drags on the S&P 500, since the performance of 10-year Treasury note reached 3.44%, its highest level since April 2011. Growth stocks are more likely to take a hit to earnings in a rising rate environment.
Higher-than-expected inflation data on Friday led traders to price in a total of 175 basis points (bps) in rate hikes for September, while expectations for a 75 basis point hike at the June meeting have risen to almost 30% from 3.1% a week ago, according to CME’s Fedwatch tool.
Source: Ambito
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