Bear market beckons as stock volatility continues in 2022

The benchmark S&P 500 index fell below 3837.248 during Friday's session, a decline that on an intraday basis put it more than 20% below its Jan. 3 record closing high. However, the index closed above that level, and did not confirm it was in a bear market – frequently defined as a drop of at least 20% from a closing high.

If history is any guide, a bear market would mean more pain could be in store for investors. The S&P 500 has fallen by an average of 32.7% in 13 bear markets since 1946, including a nearly 57% drop during the 2007-2009 bear market during the financial crisis, according to Sam Stovall, chief investment strategist at CFRA.

That decline went into reverse at the start of 2022 as the Fed grew far more hawkish and signaled it would tighten monetary policy at a faster-than-expected clip to fight surging inflation. It has already raised rates by 75 basis points this year and expectations of more hikes ahead have weighed on stocks and bonds.

Fed Chairman Jerome Powell has vowed to raise rates as high as needed to kill inflation but also believes policymakers can guide the economy to a so-called soft landing. Adding to the volatility has been the war in Ukraine, which has caused a further spike in oil and other commodity prices.A few areas of the stock market have been spared. Energy shares have soared this year, along with oil prices, while defensive groups such as utilities have held up better than broader markets.On the flip side, shares of technology and other high-growth companies have been hit hard.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks tumble on recession fears, with the S&P 500 nearing a bear marketHigh inflation, rising interest rates and disappointing corporate earnings are souring Wall Street's outlook. This is what you get for keeping Quantitative Easing for way too long. Interest rates should have been boosted *long* ago. If we had kept QE any longer, we would've met the same fate that Japan and Turkey are now facing--a currency crash. 💴🔥 So we just sent $40 billion to Ukraine.. Hmm BIDEN 2024 !
Source: CBSLA - 🏆 552. / 51 Read more »

S&P 500 falls into bear market, joins NasdaqThe broadest measure of the U.S. stock market entered a bear market on Friday. The bull will wake up soon. Funny that sanctions on the Russian Bear caused this bear market. Big ole Bear too... Covid panic was anomalous.... this is the 'big one' pullback that was long overdue after the decades long, Fed-fuled bubble post-2008. This one is just getting started... get used to the idea of 1850 on the S&P 500.
Source: FoxBusiness - 🏆 458. / 53 Read more »

S&P 500 slips below bear-market thresholdThe S&P 500 on Friday traded below 3,837.25, the level that marks a 20% pullback from the large-cap U.S. benchmark's Jan. 3 record close. A finish below that...
Source: MarketWatch - 🏆 3. / 97 Read more »

S&P 500 drops into bear market territory as recession fears mountThe S&P 500 fell into bear market territory Friday, slipping more than 20% from its record high and potentially ending the bull run that began in March 2020 you won't see the S&P 500 above 4000 again for a good few years. Big crash coming. Seems like I heard this would happen.
Source: CNN - 🏆 4. / 95 Read more »

Investors Have ‘Nowhere To Hide’ As S&P 500 Nears Bear Market TerritoryThe stock market moved lower on Thursday—pushing the S&P 500 to the brink of bear market territory—as investors continued to offload shares following warnings from major retailers about inflationary pressures.
Source: Forbes - 🏆 394. / 53 Read more »