Dow plunges 485 points to hit new closing low for the year as interest rate and recession fears roil markets
- US stocks tumbled again on Friday, with the Dow plunging more than 500 points.
- Markets continued to reel from the Fed's rate hike and hawkish forecasts earlier in the week.
US stocks sold off for a fourth straight day on Friday as fears of higher interest rates and slowing economic growth continued to roil markets.
The Dow Jones Industrial Average entered a bear market intraday after falling 20% from its last high, and hits its lowest close of 2022, dipping below the previous low of s 29,888.78 on June 17. S&P Global's Purchasing Managers' Index, a broad gauge of economic health, dropped to 48.2 in September from 48.9 last month, showing that business activity contracted at a faster pace.
That underscored fears that a wave of rate hikes this week from the Federal Reserve and other central banks will snuff out economic growth. For the week, the Dow lost 4.5%, the S&P 500 gave up 5.2%, and the Nasdaq tumbled 5.5%.
Here's where US indexes stood as the market closed at 4 p.m. on Friday:
- S&P 500: 3,693.49, down 1.72%
- Dow Jones Industrial Average: 29,591.47, down 1.61% (485.21 points)
- Nasdaq Composite: 10,867.93, down 1.8%
Here's what else is happening today:
- Goldman Sachs slashed its year-end forecast for the S&P 500, and warned that the Fed's aggressive policy path will lead to further sell-offs in stocks.
- But Fundstrat's Tom Lee remains resolute in his view that the stock market will soar into year-end.
- Russia plans to cut natural gas exports by 40% over the next three years, according to a Bloomberg report.
- Europe is scrambling to put a price cap on Russian oil and it is likely to be included in new sanctions proposals.
In commodities, bonds and crypto:
- Oil prices dropped, with West Texas Intermediate down 5.6% to $78.85 a barrel. Brent crude, the international benchmark, shed 4.7% to $86.24 a barrel.
- Gold fell 1.8% to $1,650.90 per ounce.
- The 10-year yield ticked 2.7 basis points lower to 3.681%.
- Bitcoin slipped 2.7% to $18,809.
- Strong tremors jolt Delhi-NCR, other parts of north India; no immediate loss of life or property reported
- At least 9 dead as powerful 6.8 magnitude earthquake jolts Pakistan
- India may require 31,000 pilots in next 20 years: Boeing
- Unlike global economy, India would not slow down: RBI article
- Tier-1 cities’ home sales is 2x of what it’s in tier-2 cities: PropEquity