U.S. stocks finished sharply lower Monday as investors fretted over stagflation threats — giving Dow industrials, the S&P 500, and the Nasdaq Composite their biggest three-day percentage drops since 2020.
The Nasdaq suffered its biggest three-day point decline on record, while the S&P 500 slipped below 4,000 for the first time in 13 months.
- The Dow finished lower -653.67 or -1.99%
- The S&P 500 closed down -132.10 or -3.20%
- The Nasdaq finished lower -521.41 or -4.29%
Monday’s brutal day for equities extended investors’ losses following the longest weekly losing streak for all three major indexes in years. The Dow and S&P 500 each slipped 0.2% last week, while the technology-heavy Nasdaq fell 1.5%. It was the longest string of weekly losses for the Dow since May 2019, for the S&P 500 since June 2011, and for the Nasdaq since November 2012.
Stock-market sentiment could be summed up in a single word, according to Daniel Tenengauzer, head of markets strategy and insights for BNY Mellon: “Bad,” he said via phone. Financial markets are in an even worse mood than they were in the 2008 global financial crisis, based on BNY’s own model, he said.
Investors are assessing the risks of continued high inflation against the prospects of weakening growth, combined with the need for policymakers to continue lifting interest rates. While Fed Chairman Jerome Powell said the central bank was not actively considering a 75-basis-point rate hike, that isn’t likely to keep some corners of the market from pricing that in…….[read more]
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