Stocks plunged deeper into a bear market on Tuesday, with the S&P 500 setting fresh 2022 lows and the 10-year Treasury yield continuing to rise to levels not seen in at least a decade.
The S&P 500 traded 0.7% lower, breaking below the previous bear market intraday low of 3,636 set in mid-June. The Dow Jones industrial average was last down 200 points, or 0.6%, giving back an earlier gain of nearly 400 points. The Nasdaq composite lost 0.4%.
The S&P 500 is now 24.7% below its record in January, while the Dow is 21.4% below its all-time low. The Nasdaq has fallen more than 33% since hitting a record high in November.
The 10-year Treasury rose nearly 9 basis points to 3.96%, recovering from levels seen earlier in the day. The 2-year rate was last seen at 4.308%.
Sterling traded just 0.2% higher against the dollar to around $1.07 and a rally in the British pound also eased. The pound earlier rose more than 1% against the US dollar in an attempt to bounce back from all-time lows earlier in the week.
“The fact that we’ve lost support at both 3900 and 3800 and certainly headed to the June lows tells us that the risk-averse environment hasn’t changed much over the past six weeks,” said Art Hogan, head of markets. B. Strategist at Riley Financial.
“We’re still concerned that the Fed is going to overdo it and push the economy into recession,” Hogan added.
Stocks got an early boost after Chicago Federal Reserve President Charles Evans It felt a kind of fear About the central bank raising rates too quickly to fight inflation. His comments were in contrast to a number of central bank officials who have recently reiterated a tough stance against rising prices.
Moves will follow Stocks lose for five consecutive days, the S&P 500 ends at its lowest level since 2020. The Dow fell more than 300 points on Monday, putting it in a bear market after falling more than 20% from its record high. The 30-share average also posted its lowest close since late 2020.
