{"id":1513571,"date":"2022-06-13T12:19:47","date_gmt":"2022-06-13T16:19:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1513571"},"modified":"2022-06-13T12:19:49","modified_gmt":"2022-06-13T16:19:49","slug":"black-monday-sp-500-falls-into-bear-market-territory","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/black-monday-sp-500-falls-into-bear-market-territory\/","title":{"rendered":"Black Monday: S&#038;P 500 Falls Into Bear Market Territory"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fblack-monday-sp-500-falls-into-bear-market-territory%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1513571&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"group\">\n<p>Stocks tumbled Monday, pushing the S&#038;P 500 back into bear market territory, as the major averages came off their worst week since January.<\/p>\n<p>The Dow Jones Industrial Average dropped 618 points, or 1.95%, the S&#038;P 500 fell 2.7% and the Nasdaq Composite tumbled 3.5%.<\/p>\n<p>There&#8217;s broad selling &#8220;and a little bit of fear as to whether the Fed is going to make a misstep and normalize rates too quickly and create a recession,&#8221; said Jeff Kilburg, chief investment officer of Sanctuary Wealth.<\/p>\n<p>The S&#038;P 500 hit a new intraday low for the year and its lowest level since March 2021. The benchmark is more than 20% from its record, back in bear market territory after trading there briefly on an intraday basis about three weeks ago.<\/p>\n<p>The benchmark now sits more than 20% from its January record close with just 12 stocks trading in the green. If it finishes there on Monday, it will confirm a bear market to many on Wall Street.<\/p>\n<p>&#8220;The odds of a &#8216;June Swoon&#8217; straight to 3,400 have gone up significantly, in our view,&#8221; wrote Jonathan Krinsky, technical analyst for BTIG.<\/p>\n<p>&#8220;We thought a momentum reversion where winners got bought and losers sold would create chop at the index level, but last week is a reminder that the risk continues to be to the downside,&#8221; Krinsky added.<\/p>\n<p>Monday&#8217;s sell-off was broad-based, with roughly 26 New York Stock Exchange-listed stocks trading lower for every advanced. The moves could indicate that many investors are profit-taking or repositioning their portfolios, and may signal that markets are in &#8220;a capitulation stage,&#8221; said Kilburg.<\/p>\n<p>Shares of Boeing, Dow, Salesforce and Chevron fell more than 8%, 6%, 5.9% and 5%, respectively, dragging down the Dow. Beaten-up tech shares also took a hit with Netflix, Amazon and Nvidia down more than 6% as the Nasdaq touched a fresh 52-week low and its lowest level since November 2020.<\/p>\n<p>Travel stocks also slipped on Monday, with Carnival Corporation and Norwegian Cruise Line down about 10% each. Delta Air Lines and United also fell more than 7% and 9%, respectively.<\/p>\n<p>All major S&#038;P 500 sectors dipped into the red, with energy down more than 6%. Consumer discretionary, real estate and materials also slipped more than 4%.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"ChartSlate-chartSlateContainer\">\n<h3>Loading chart&#8230;<\/h3>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Meanwhile, short-term rates jumped as investors still reeling from a hotter-than-expected inflation report on Friday braced for the Federal Reserve to raise rates later in the week.<\/p>\n<p>The 2-year Treasury yield rose by 17 basis points to more than 3.22% Monday, <a href=\"https:\/\/www.cnbc.com\/2022\/06\/13\/us-bonds-2-year-treasury-rate-hits-highest-level-since-2007.html\">reaching its highest level since 2007<\/a> as investors bet the Fed may have to get even more aggressive to squash inflation. At one point in the session, the 2-year rate traded above its 10-year counterpart for the first time since April, a so-called yield curve inversion seen as an indicator of a recession.<\/p>\n<p>The moves came after the major averages last week posted their biggest weekly declines since late January as investors grew increasingly concerned rising inflation will tip the economy into a recession.<\/p>\n<p>The Dow and S&#038;P 500 fell 4.6% and 5.1%, respectively, while the Nasdaq Composite lost 5.6%. A chunk of those losses came Friday, when hotter-than-expected U.S. inflation data spooked investors. The Dow dropped 880 points, or 2.7%. The S&#038;P 500 and Nasdaq lost 2.9% and 3.5%, respectively.<\/p>\n<p>The Bureau of Labor Statistics reported Friday that the U.S. consumer price index rose last month by 8.6% from a year ago, its fastest increase since December 1981. That gain topped economists&#8217; expectations. The so-called core CPI, which strips out food and energy prices, also came in above estimates at 6%.<\/p>\n<p>Gasoline prices <a href=\"https:\/\/www.cnbc.com\/2022\/06\/11\/gasoline-prices-top-5-a-gallon-nationally-for-the-first-time-and-are-likely-headed-higher.html\">topped $5 a gallon over the weekend<\/a>, further fanning fears over rising inflation and falling consumer confidence.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Stock picks and investing trends from CNBC Pro:<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Bitcoin <a href=\"https:\/\/www.cnbc.com\/2022\/06\/13\/bitcoin-btc-falls-as-market-focuses-on-celsius-issue-fed-rate-hike.html\">tumbled below $24,000 on Monday<\/a> and hit its lowest level since 2020 as risk-averse investors continued to dump crypto amid rising rates.<\/p>\n<p>&#8220;The cryptocurrency bitcoin has been a great gauge of investors&#8217; risk threshold for equities,&#8221; wrote JC O&#8217;Hara, chief market technician at MKM Partners. &#8220;Plenty of longs who bought in last year are still trapped, and thus we could easily see a pullback to 19,500. That would be a bearish read through for stocks.&#8221;<\/p>\n<p>The Fed is expected to announce at least a half-point rate hike on Wednesday. The Fed has already raised rates twice this year, including a 50-basis-point (0.5 percentage point) increase in May in an effort to stave off the recent inflation surge. Following Friday&#8217;s CPI report, some economists believe the Fed could even raise rates <a href=\"https:\/\/www.cnbc.com\/2022\/06\/10\/some-economists-predict-the-fed-will-hike-rates-by-as-much-as-0point75percent-next-week.html\">by 0.75% this week<\/a>.<\/p>\n<p>&#8220;May&#8217;s CPI report showed scant signs of inflation peaking, though we still expect peaking soon. The report also suggests a more hawkish Fed and higher recession risk,&#8221; wrote Ed Yardeni, president of Yardeni Research.<\/p>\n<p>&#8220;Investor and consumer sentiment both have soured. But this time, pervasive bearishness may not be as useful a contrarian bullish signal as in the past,&#8221; he said, adding that the firm now sees a 45% chance of a &#8220;mild recession.&#8221; That&#8217;s up from the previous forecast of 40%.<\/p>\n<p><em>Subscribe<\/em> <a href=\"https:\/\/www.cnbc.com\/application\/pro\/\"><em>to CNBC PRO<\/em><\/a> <em>for exclusive insights and analysis, and live business day programming from around the world.<\/em><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"denied:data:image\/svg+xml;base64,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\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stocks tumbled Monday, pushing the S&#038;P 500 back into bear market territory, as the major averages came off their worst week since January. The Dow Jones<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1513571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1513571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1513571"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1513571\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1513571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1513571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1513571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}