Wall Street closes in the red, plunges into a “bear market” – 09/26/2022 at 10:35 p.m.

The Wall St. sign outside the New York Stock Exchange.

The Wall St. sign outside the New York Stock Exchange.

by Noel Randewich and Shrivathsa Sridhar

(Reuters) – The New York Stock Exchange closed lower on Monday as fears that U.S. Federal Reserve (Fed) rate hikes could cause the economy to slow further fueled gains. indices in the “bear market” or bear market zone.

The Dow Jones index fell -1.11%, or 329.6 points, to 29,260.81 points.

The broader S&P-500 fell 38.19 points, or -1.03%, to 3,655.04 points.

The Nasdaq Composite fell 65 points (-0.60%) to 10,802.92 points.

After two weeks of losses in the stock markets, the Dow has confirmed that it has been moving into bearish territory since early January.

Meanwhile, the S&P 500 gave up gains made over the summer after the Fed signaled last Wednesday that its rates could peak at 4.60% in 2023 and that it did not expect any rate cuts before 2024.

“Investors are throwing in the towel,” said Jake Dollarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma.

“It’s because of the uncertainty about where Fed rates might peak. Is it going to be 4.6%? Is it going to be 5%? Is that point going to be reached in 2023?”

The confidence of the investors to également été mise à mal par l’incertitude que régnait sur le marché des changes, alors que la livre sterling a teint son plus bas level after the passage du Royaume-Uni au système décimal au début des années 1970 lors de the session.

This has further increased volatility as markets fear a global recession. The volatility index was trading near a three-month high during the session.

Growth stocks like Amazon.com, Apple or Tesla have allowed the Nasdaq to limit its losses.

Casino operators Wynn Resorts, Las Vegas Sands and Melco Resorts & Entertainment jumped from 12% to 25%, boosted by Macau’s announcement of a reopening of the sector to tourists from mainland China.

* The reminder of the session in Europe: [.EUFR]

* TO FOLLOW ON TUESDAY:

(With the contribution of Ankika Biswas; French version Camille Raynaud)

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