Dow, S&P fall again, ending at lowest level of year

Agence France-Presse
New York Stock Exchange
The aggressive moves by central banks have weighed on equities, with many investors now seeing increased odds of a recession.
AFP / Spencer Platt

NEW YORK, United States — Wall Street stocks fell again Monday as major indices slumped to their lowest level of 2022 amid market fallout from central bank policy pivots to address inflation.

"Financial markets are a mess," said Oanda's Edward Moya, alluding to turbulence in the foreign exchange markets that has boosted the dollar. 

"Wall Street is realizing that we won't be seeing a significant sign that inflation is easing fast enough in the next couple of months and that should make it tough to buy the dip just yet."

After last week's rout, US indices climbed early in the session before falling.

The Dow Jones Industrial Average finished down 1.1 percent at 29,260.81.

The broad-based S&P 600 shed 1.0 percent to 3,655.04, while the tech-rich Nasdaq Composite Index declined 0.6 percent to 10,802.92.

Monday was the lowest close of 2022 for both the Dow and S&P 500.

The S&P 500 also dropped nearly five percent last week after the Federal Reserve announced another big hike in interest rates, spurring rate moves from the Bank of England and other central banks.

The aggressive moves by central banks have weighed on equities, with many investors now seeing  increased odds of a recession.

Still, some analysts consider the stock market to be "oversold" in the short-run.

Given that backdrop, CFRA Research "thinks the S&P 500 and its constituent sectors and sub-industries are ripe for a relief rally," said a note from Chief Investment Strategist Sam Stovall. "The only question is whether the rally will have legs or get sold into."



  • Latest
  • Trending
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

or sign in with