Markets tumble worldwide, bear market growls on Wall Street

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Fears about a possible recession are pounding markets worldwide on Monday, and Wall Street’s S&P 500 tumbled into the maw of what’s known as a bear market after sinking more than 20% below its record set early this year

FILE - A pedestrian walks past the New York Stock Exchange, Jan. 24, 2022, in New York. Stocks are opening sharply lower on Wall Street as inflation worries mount, pushing the S&P 500 closer to a bear market decline of 20% from the peak it reached early this year. The index slumped 2.3% as traders worry that inflation, already at a four-decade high, might be even tougher to rein in than expected.

With the Fed seemingly pinned into having to get more aggressive, prices tumbled for everything from bonds to bitcoin, from New York to New Zealand, with the biggest winners of the early pandemic often taking the heaviest hits. Such expectations are also sending U.S. bond yields to their highest levels in years. The two-year Treasury yield shot to 3.19% from 3.06% late Friday, its second straight major move higher. It’s more than quadrupled this year and touched its highest level since 2008.

The pain for markets was worldwide as investors braced for more aggressive moves from a coterie of central banks. The last bear market wasn’t that long ago, in 2020, but it was an unusually short one that lasted only about a month. The S&P 500 got close to a bear market last month, briefly dipping more than 20% below its record, but it didn't finish a day below that threshold.

That would mark another roughly 10% drop from the current level, and Wilson said it reflects his view that Wall Street's earnings forecasts are still too optimistic, among other things.

 

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We need Trump back. Low gas prices, high stock market. More money in our pockets. Anyone who votes democrat from here on out is mentally challenged.

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