S&P plunges, sending Wall St into bear market territory

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The index was down 2.7 per cent in first trading and has tumbled more than 20 per cent from its record in January, sparking fears that the US is on the brink of recession.

P 500 down more than 20 per cent from its record, amid fears that a recession is more likely given how unshakeable inflation has become.P 500 was 2.7 per cent lower in the first trading after investors had the weekend to reflect about a stunning report that showed inflation is getting worse, not better as some had hoped. The Dow Jones Industrial Average was down 625 points, or 2 per cent, at 30,767, as of 9.40am Eastern time, and the Nasdaq composite was 3 per cent lower.

It’s all a whiplash turnaround from earlier in the pandemic, when central banks worldwide slashed rates to record lows and made other moves that propped up prices for stocks in hopes of juicing the economy.Such expectations are also sending US bond yields to their highest levels in years. The two-year Treasury yield shot to 3.20 per cent from 3.06 per cent late Friday, its second straight major move higher. It’s more than quadrupled this year and touched its highest level since 2008.

The pain was worldwide as investors braced for more aggressive moves from a coterie of central banks.

 

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