Dow Keeps Sliding After Entering Bear Market

S&P 500 also dropped Tuesday
By Newser Editors and Wire Services
Posted Sep 27, 2022 3:31 PM CDT
Dow Keeps Sliding After Entering Bear Market
A broker talks on his cell phone outside the New York Stock Exchange building, Tuesday, Sept. 27, 2022, in the Financial District of New York.   (AP Photo/Mary Altaffer)

Stocks ended a wobbly day with mixed results on Wall Street as markets continue to be unstable amid worries about a possible recession. The volatile trading came a day after the Dow Jones Industrial Average followed other major US indexes into a bear market. The S&P 500 fell 7.75 points, or 0.2%, to 3,647.29. The Dow Jones Industrial Average fell 125.82 points, or 0.4%, to 29,134.99. The Nasdaq rose 26.58 points, or 0.2%, to 10,829.50. With just a few days left in September, stocks are heading for another losing month as markets fear that the higher interest rates being used to fight inflation could help knock the economy into a downturn, the AP reports.

Banks, household goods makers, and communications companies were among the biggest weights on the market. Bank of America fell 1.5%, Procter & Gamble fell 2.8% and Comcast slipped 2%. Energy stocks gained ground as U.S. oil prices rose 2.3%. Exxon Mobil rose 2.1%. Small company stocks held up better than the broader market. The Russell 2000 rose 0.4%. The S&P 500 is down roughly 8% in September and has been in a bear market since June, when it had fallen more than 20% below its all-time high set on Jan. 4. The Dow’s drop on Monday put it in the same company as the benchmark index and the tech-heavy Nasdaq.

Investors will be watching the next round of corporate earnings very closely to get a better sense of how companies are dealing with stubbornly hot inflation. Investors are also closely watching the latest economic updates. Consumer confidence remains strong, despite higher prices on everything from food to clothing. The government will release its weekly report on unemployment benefits on Thursday, along with an updated report on second-quarter gross domestic product. On Friday, the government will release another report on personal income and spending that will help provide more details on where and how inflation is hurting consumer spending. (More stock market stories.)

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