Major U.S. stock indexes traded below their June lows on Friday, with the blue-chip Dow Jones Industrial Average flirting with a dip in bear market territory, capping an ugly week for global stocks as investors reacted to central banks sharply raising interest rates in an attempt on reining in high inflation.
Dow Jones Industrial Average DJIA,
was down about 615 points, or 2%, near 29,461 Friday afternoon, trading below its June 17 closing low of 29,888.78, after falling as low as 29,356.53. A finish at or below 29,439.72 would mark a 20% decline from the DJIA’s record close of 36,799.65 set on Jan. 4, which would meet the widely used definition of a bear market.
However, the big question remains around the broader S&P 500 index SPX,
and the potential for the more closely followed large-cap benchmark to take its June 16 closing low of 3,666.67 or its June intraday low just below 3,637. The S&P 500 fell 80 points, or 2.1%, to 3,677 after trading as low as 3,662.82.
Global stocks fell sharply early Friday, with U.S. stocks suffering heavy losses on Wall Street as the market opened. The Federal Reserve delivered another big rate hike earlier this week, signaling that it would push interest rates higher than market participants had previously expected. A number of other global central banks also delivered rate hikes this week, underscoring investor concerns about the economic outlook.
See: The Fed Will Tolerate a Recession and 5 Other Things We Learned from Powell