por admin » Mar Sep 27, 2022 12:07 am
S&P 500 notches new closing low for 2022, Dow falls into bear market as dollar surges
Sarah Min
Tanaya Macheel
The S&P 500 notched a new closing low for 2022 and the Dow Jones Industrial Average slipped into a bear market as interest rates surged and turmoil rocked global currencies.
The S&P 500 declined 1.03% to 3,655.04, falling below the June closing low of 3,666.77. At one point during the day, the index dipped to 3,644.76, less than eight points away from its intraday low of 2022: 3,636.87.
The Dow dropped 329.60 points, or 1.11%, to 29,260.81 — accelerating losses in the final moments of trading. The 30-stock index is down about 20.4% from its Jan. 4 closing high. The Nasdaq Composite fell 0.6% to 10,802.92.
S&P 500 breaks below June closing low
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The British pound dropped to a record low on Monday against the U.S. dollar, falling 4% at one point to an all-time low of $1.0382. The pound has since come off its worst levels on speculation that the Bank of England may have to raise rates more aggressively to tamp down inflation.
The Federal Reserve’s aggressive hiking campaign, coupled with the U.K.’s tax cuts announced last week has caused the U.S. dollar to surge. The euro hit the lowest versus the dollar since 2002. A surging greenback can hurt the profits of U.S. multinationals and also wreak havoc on global trade, with so much of it transacted in dollars.
“Such U.S. dollar strength has historically led to some kind of financial/economic crisis,” wrote Morgan Stanley’s Michael Wilson, chief U.S. equity strategist, in a note. “If there was ever a time to be on the lookout for something to break, this would be it.”
Bond yields leapt on Monday, with the 10-year Treasury yield topping 3.9% at one point during the day. That marks its highest level since 2010.
The yield also jumped on the 2-year Treasury, which is especially sensitive toward Fed policy. The rate on the note surpassed 4.3%, the highest level since 2007.
Lea la cobertura del mercado de hoy en español aquí.
9 HOURS AGO
West Texas Intermediate crude settles at lowest level since January
West Texas Intermediate crude, the benchmark for U.S. oil, ended the day at $76.71, slipping 2.58%. It’s the lowest settle for the commodity since Jan. 3.
Brent crude slipped 2.43% to settle at $86.06. Earlier, it traded as low as $83.81, the lowest level since Jan. 13.
Oil prices ran up earlier in the year, fueled by Russia’s invasion of Ukraine, but recent declines for the commodity have sharply trimmed its gains for 2022. WTI is up only 1.99% for the year, while Brent is up 8.07%.
-Darla Mercado, Gina Francolla
10 HOURS AGO
Match Group, Organon trade at all-time lows
Match Group, the parent company of some of the world’s best-known online dating platforms, is trading at its lowest level since the company went public in 2015.
The company behind services such as Tinder, Hinge, OkCupid and Match.com first went public via an initial public offering. It now trades as part of the Nasdaq under the ticker MTCH.
Match Group was trading down about 1.2% Monday at $46.75. Shares traded as low as $46.19 — marking its lowest valuation since becoming a publicly traded company.
Match Group hits lowest trading level since going public
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Pharmaceutical company Organon is similarly trading at its lowest since it spun off from Merck in June 2021.
The two companies are among the more than 100 stocks in the S&P 500 trading down to levels not seen in a year or longer. Those stocks span industries including telecommunication, financial services, shipping, technology and real estate.