© Reuters. FILE PHOTO: A chart display of the Dow Jones Industrial Average during the trading day on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 24, 2022. REUTERS/ Brendan McDermid
By Medha Singh
(Reuters) – Blue-chip shares tumbled on Friday, at a pace that confirmed it was in a bear market after it fell 20% from its record high in January.
The Dow will be the last of the three major indexes to achieve bear market status after that harsh milestone in June and the Nasdaq in March.
If the Dow closes below 29,439.72 points, it would confirm a bear market that began January 4, according to a widely used definition.
New selling pressure in the market comes in a week that has seen the US Federal Reserve raise interest rates by 3/4 percentage point for the third time in a row and pledge to continue until inflation controlled.
It’s been a tumultuous year for Wall Street, stymied by worries about Russia’s invasion of Ukraine, an energy crisis in Europe and the end of easy monetary policy globally.
The S&P 500 has lost 23% this year and the Nasdaq is down 31%.
The last time the three indexes fell so sharply was in 2020 during the height of the pandemic sell-off.
Growing fears of a US recession next year and its impact on corporate profits have prompted brokerages to downgrade their year-end targets for the S&P 500.
At 2:11 p.m. ET, the Dow Jones Industrial Average was down 696.04 points, or 2.31%, to 29,380.64, the S&P 500 was down 92.47 points, or 2.46%, at 3,665.52 and down 274.44 points, or 2.48%, at 10,792.37.