Stocks fall on recession fears; Dow slips into bear market

[Omaha Steve]

Source: AP

By DAMIAN J. TROISE and ALEX VEIGA

The Dow Jones Industrial Average became the last of the major U.S. stock indexes to fall into what’s known as a bear market Monday as the market deepened its slump amid growing fears of a global recession.

The blue chip index fell 1.1%, while the S&P 500 closed 1% lower and the Nasdaq dropped 0.6% as the indexes extended their losing streak to a fifth day.

The British pound dropped to an all-time low against the dollar and investors continued to dump British government bonds in displeasure over a sweeping tax cut plan announced in London last week.

Markets in Europe closed mostly lower. The head of the European Central Bank warned that the economic outlook “is darkening” as high energy and food prices pushed up by the war in Ukraine sap consumer spending power. France, the EU’s second-biggest economy, forecast a substantial slowdown in economic growth next year.



FILE - Street signs at the intersection of Wall and Broad Streets are shown in lower Manhattan, Wednesday, Oct. 13, 2021. (AP Photo/John Minchillo, File)


Read more: https://apnews.com/article/inflation-japan-asia-financial-markets-6eabd6b0fd5c301b916f731f04b0d951?utm_source=homepage&utm_medium=TopNews&utm_campaign=position_05

[onecaliberal]

1. The fed is going to get their recession one way or another.

[Rebl2]

3. Well they

warned us. Don’t like it though.

[onecaliberal]

5. It's not necessary.

[Alexander Of Assyria]

16. The fed has no choice but to raise interest rates cause America gorged on free money

and massive spending…mostly on the military as usual ofc,…for ten years…this is the reckoning.

Nothing is free so I m told. Except ofc the military spending on an obscene scale gets the free pass.

[bucolic_frolic]

2. 5 quarter recession said BOE last week

according to economic guru advertising blurb

[PatrickforB]

4. Wall Street is NOT Main Street.

The profit gods of Wall Street won't even give up a little price gouging to help bring down inflation.

In the meantime, wages are barely keeping up with inflation, yet the Fed wants to create a recession to cause layoffs which will end 'wage inflation.'

THAT is fucked up.

[onecaliberal]

6. Yup. We need people in office that are not owned by these pricks and can not be bought.

[dchill]

9. That's why the Fed is fucked up.

Corporate masters trying to explain why the trickle switch is still stuck in the up position.

[Alexander Of Assyria]

17. Wall Street has a cold and The Media has a shit fit...where are they when Main Street falls?

corporations and their wealthy owners made out like bandits for a decade…now they can’t find enough workers to exploit and are crying over having to pay more wages…ofc higher wages give Wall Street and their compliant capitalist media the cold shivers. The Weqlth must not be fairly distributed!

[question everything]

7. ...

[Strelnikov_]

20. Now that is funny . . . .

[progree]

8. Another milestone today: the S&P 500 closed below its previous bear market low set June 16

On June 16 it closed at 3667, its lowest point of this bear market so far and of this year so far. From then on it went up, and then down, but always staying above 3667 (or more precisely the closings were all above 3667). So we could always say we've seen worse this bear market.

The above was true until today when it closed at 3655, down 23.8% from its January 3 all-time high of 4797.

Anyway, its a new closing low for this bear market.

[CountAllVotes]

10. The Fed was so busy trying to please his master

The Fed forgot about people like myself. An American that spent a lot of time working a minimum wage job and never earned much only to fall ill in 1995.

The Fed was tRUMP's puppet and taking orders from him.

He was raising rates back to where they should be but tRUMP didn't want that.

So, he followed his orders.

What a fine mess we are in today thanks to the FORMER GUY as he is known.

Don the Con's tentacles reach far and wide and oh what a mess we have now.

Sickening.

[no_hypocrisy]

11. What are the indicators when a "Bear Market" starts?

[Omaha Steve]

12. Here it is

A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.

[no_hypocrisy]

13. Is it still a Bear Market if the original high value/price was based upon

over-inflation? IOW, were the high value prices based upon valid data or just literally supply-and-demand?

Is it a Bear Market if it's a "market correction" but in increments, not a crash?

[Omaha Steve]

14. More supply-and-demand than valid data took the market to it's highs

It is a Bear Market if it's a "market correction" but in increments, not a crash. Yes.

[no_hypocrisy]

15. Thank you. Got it!

[progree]

19. A bear market is down 20% or more from a previous "recent" high, but in every compilation of

bear markets I've seen since WWII, "recent" has meant the previous all-time high. Irregardless of the reason for the drop. Irregardless of how slow or fast the drop was. Irregardless of how much or how little inflation there was -- it's all in nominal dollars.

[progree]

18. Everything I've seen - a bear market is 20% or more down from a recent high

And for defining bear markets in every compilation I've seen, at least since WWII, "recent" actually means the previous ALL-TIME high. It doesn't matter if it was incremental or happened in a short time span. It doesn't matter what caused the drop. Inflation is ignored, its all nominal dollars.

The bear markets include all crashes, i.e. anything that is 20% OR MORE down, no matter how far down. E.g. the housing bubble burst, which saw a peak-to-trough decline of 57% in the S&P 500 (the worse peak-to-trough drop since the Great Depression) is considered a bear market in every compilation of bear markets I've ever seen.