S&P 500 sinks to two-year low as bear market deepens

  • S&P 500 lowest since November 2020
  • Utilities and consumer discretionary sectors lead declines
  • Investors worried about slowing corporate earnings growth
  • Indices: Dow -0.74%, S&P 500 -0.57%, Nasdaq -0.24%

Sep 27 (Reuters) – Wall Street sank deeper into a bear market on Tuesday, with the S&P 500 hitting a two-year intraday low as Federal Reserve policymakers showed appetite for further interest rate hikes. interest, even at the risk of plunging the economy into a slowdown.

As the Fed signaled last week that high interest rates could last through 2023, the benchmark S&P 500 (.SPX) erased the last of its gains from a summer rally and touched lows last seen in late November 2020. read more

On Tuesday, St. Louis Fed President James Bullard made the case for more rate hikes, while Chicago Fed President Charles Evans said the central bank will have to raise interest rates. at least another percentage point this year. Read more

Join now for FREE unlimited access to Reuters.com

“It’s disappointing, but it’s no surprise,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “People are concerned about the Federal Reserve, the direction of interest rates, the health of the economy.”

With Tuesday’s decline, the S&P 500 is down 24% from its January 23 closing high.

Wells Fargo analysts now see the U.S. central bank raising its target range for the federal funds rate to between 4.75% and 5.00% by the first quarter of 2023. Read more

Ten of 11 S&P 500 sector indices fell, led by a 2.0% decline in utilities (.SPLRCU) and a 1.8% decline in consumer staples (.SPLRCS).

Parent Alphabet from Microsoft and Google (GOOGL.O)each lost just over 1% and weighed heavily on the S&P 500. Tesla was also up about 1%, with $13 billion in shares traded, more than any other company on Wall Street.

The benchmark 10-year US Treasury yield hit its highest level in more than 12 years amid hawkish comments from Fed officials.

In afternoon trading, the Dow Jones Industrial Average (.DJI) was down 0.74% at 29,045.38 points, while the S&P 500 (.SPX) lost 0.57% to 3,634.13.

The Nasdaq Composite (.IXIC) fell 0.24% to 10,777.00.

Concerns about corporate profits being hit by soaring prices and a weaker economy have also rattled Wall Street over the past two weeks.

Analysts cut their S&P 500 earnings forecasts for the third and fourth quarters, as well as the full year. For the third quarter, analysts now expect S&P 500 earnings per share to rise 4.6% year-over-year, down from 11.1% growth expected in early July. Read more

Falling issues outnumbered rising ones on the NYSE by a ratio of 1.60 to 1; on the Nasdaq, a ratio of 1.21 to 1 favored the decliners.

The S&P 500 posted no new 52-week highs and 138 new lows; the Nasdaq Composite recorded 24 new highs and 425 new lows.

Join now for FREE unlimited access to Reuters.com

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

Our standards: The Thomson Reuters Trust Principles.

Leave a Comment

Your email address will not be published. Required fields are marked *