Another volatile day on Wall Street ended with more losses for stocks on Thursday, drawing the S&P 500 closer to its first bear market since the beginning of the pandemic.
The index, a benchmark for many funds, fell 0.6 per cent after easing off a deeper stumble. The latest decline came a day after the S&P 500 had its biggest drop in nearly two years. It’s now down 18.7 per cent from the record high it set early this year and is nearly at the 20 per cent threshold that defines a bear market.
Tech stocks helped steady Wall Street on Thursday after Wednesday’s horror session.Credit:AP
The Dow Jones Industrial Average fell 0.8 per cent and the Nasdaq slipped 0.3 per cent. The Australian sharemarket is set for a negative start to the session, with futures at 5.01am AEST pointing a fall of 10 points, or 0.1 per cent, at the open.
The indexes have remained mired in a deep slump as investors worry that the soaring inflation that’s hurting people shopping for groceries and filling their cars up is also walloping profits at U.S. companies. Target fell again, a day after losing a quarter of its value on a surprisingly large drop in earnings.
The latest pullback is further indication “that the market is trying to find direction,” said Lindsey Bell, chief markets and money strategist at Ally Invest. “There’s just still a significant amount of uncertainty, especially in regard to what the (Federal Reserve) is going to do, how that’s going to impact growth in the future, and additionally, where the heck is inflation going from here.”
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The S&P 500 fell 22.89 points to 3,900.79. The Dow dropped 236.94 points to 31,253.13. The Nasdaq slid 29.66 points to 11,388.50. The three indexes are on pace to extend a string of at least six weekly losses.
Smaller company stocks held up better than the broader market. The Russell 2000 rose 1.38 points, or 0.1 per cent, to 1,776.22.
Rising interest rates, high inflation, the war in Ukraine and a slowdown in China’s economy have caused investors to reconsider the prices they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers. Investors have been worried that the soaring inflation that’s hurting people shopping for groceries and filling their cars up is also walloping company profits.
