Bear market beckons as US stock slide deepens – Reuters.com
- Date: 21-May-2022
- Source: Reuters
- Sector:Financial Markets
- Country:Gulf
Bear market beckons as US stock slide deepens – Reuters.com
NEW YORK, May 20 (Reuters) - The stock market's brutal year neared a grim milestone as the S&P 500's slide on Friday threatened to leave it in a bear market for the first time since March 2020, fueled by worries over sky high inflation, a hawkish Federal Reserve and future economic growth.
The benchmark S&P 500 index fell below 3837.248, a decline that on an intraday basis put it 20% from its Jan. 3 record closing high. Should that hold until Friday's close, it would confirm that the index is in a bear market – frequently defined as a drop of at least 20% from a closing high.
If history is any guide, a bear market would mean more pain could be in store for investors. The S&P 500 has fallen by an average of 32.7% in 13 bear markets since 1946, including a nearly 57% drop during the 2007-2009 bear market during the financial crisis, according to Sam Stovall, chief investment strategist at CFRA.
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