Stock declines signal a bear market; here's what that means

have led investors to reconsider what they're willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers. Big swings have become commonplace and Monday appears to be no exception.

The S&P 500, Wall Street's main barometer of health, slid more than 2.6% in early trading Monday to 3,800. That's nearly 21% below the high set on Jan. 3. The Nasdaq is already in a bear market, down 31.5% from its peak of 16,057.44 on Nov. 19. The Dow Jones Industrial Average is more than 16% below its most-recent peak.

Last month, the Fed signaled additional rate increases of double the usual amount are likely in upcoming months. Consumer prices are at the highest level in four decades, and rose 8.6% in May compared with a year ago. If customers are paying more to borrow money, they can't buy as much stuff, so less revenue flows to a company's bottom line. Stocks tend to track profits over time. Higher rates also make investors less willing to pay elevated prices for stocks, which are riskier than bonds, when bonds are suddenly paying more in interest thanks to the Fed.

While dumping stocks would stop the bleeding, it would also prevent any potential gains. Many of the best days for Wall Street have occurred either during a bear market or just after the end of one. That includes two separate days in the middle of the 2007-2009 bear market where the S&P 500 surged roughly 11%, as well as leaps of better than 9% during and shortly after the roughly monthlong 2020 bear market.

Can Trudeau blame that on Putin too?

It means Trudeau printed then spent trillions of Canuck bucks and sent it to other countries instead of fixing our own problems so now we are in a recession. Great job JT

lt means the wealthy will buy your shares after you go broke .

Maybe it was dumb to shut down the economy for 2 years and print trillions of dollars

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