Dow craters 875 points, S&P closes in bear market amid rate hike jitters

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Dow craters 875 points, S&P closes in bear market amid rate hike jitters

A sharp selloff on Wall Street on Monday sent the Dow Jones Industrial Average tumbling more than 1,000 points before stabilizing with a loss of more than 874 points or 2.8%, while the Nasdaq Composite fell 4.7 % and the S&P 500, the broadest measure of stocks, lost 3.8% officially closing in a bear market.

The S&P is now down almost 22% from its peak reached in January.

Investors fear the Federal Reserve will be forced to be more aggressive with rate hikes as bond yields jump with the 10-year Treasury hitting 3.371%. In commodities, oil added 0.2% to $120.93 a barrel.

Developing story

Dow remains under pressure

Symbol Price To change %To change
BA $127.00 -6.73 -5.03%
RCMP $178.45 -8.66 -4.63%
DOW $58.91 -2.96 -4.78%
MCD $237.38 -4.78 -1.97%

29 of Dow’s 30 components traded lower with 30 minutes remaining in the session led by Boeing, Salesforce and Dow Chemical. McDonald’s maintained modest gains.

Dow Jones averages.

$

30629.66

A stock market expert reveals the most important number to watch

Thrasher Analytics Founder Andrew Thrasher Reacts to S&P 500 Entering Bearish Territory and Provides Bitcoin Insight on “Making Money”

Symbol Price To change %To change
BITQ $6.31 -0.99 -13.56%
BITO $14.71 -3.24 -18.05%
GCC $26.50 -0.19 -0.71%

Bitcoin-related exchange-traded funds are under pressure as cryptos are hammered.

Developing story

Dow drops more than 500 points, S&P hits bear market on recession fears

Symbol Price To change %To change
Me: DJI $30,878.09 -514.70 -1.64%
SP500 $3,816.21 -84.65 -2.17%
I: COMP $11,048.70 -291.32 -2.57%

US stocks fell in every direction on Monday morning, with the S&P 500 hitting a new bear market, down 20% from its January peak, as investors battle rising recession fears and yields bondholders go up. The 10-year Treasury yield hit 3.27%, the highest since May 2011. In commodities, oil hovered at the $119 level and gasoline prices at $5.01 per AAA.

The Federal Reserve will begin its two-day meeting on Tuesday with a decision on Wednesday.

Developing story

S&P approaches a new bear market

The S&P 500, the broadest measure of stocks, is close to a fresh bear market with the benchmark down 18.7% from its recent high on Jan. 3, 2022.

Dow Jones averages.

$

31392.79

WATCH LEVEL: 3,837.249

Developing story

Inventories set up for a tough start to the week

Dow Jones averages.

$

31392.79

Dow Jones Industrial Average futures fell about 500 points on Monday heading into what could be a volatile week for stocks with the Federal Reserve’s June meeting on Wednesday.

Developing story

Bitcoin continues to be beaten

Bitcoin, the world’s largest cryptocurrency by market value, continues to fall in tandem with US stocks.

Futures contracts at a glance

U.S. equity futures plunged on Monday on fears of an interest rate hike from the Federal Reserve later this week.

Dow Jones Industrial Average futures are down 551 points, or 1.79%, while Nasdaq futures are down 2.81%. The S&P 500 is down 2.23% in premarket trading and is one step away from entering a bear market.

Oil prices also fell on Monday. West Texas Intermediate crude futures traded at $119 a barrel while Brent Crude futures traded around $120.50 a barrel.

Republican House Rep. DesJarlais to introduce new bill to block Biden’s student loan relief

Rep. Scott DesJarlais, R-Tenn., is set to introduce a bill that will seek to block President Biden’s student loan forgiveness plan.

“There’s a lot of people who have taken out loans and, you know, maybe didn’t get their dream job, but don’t pay them back,” DesJarlais told FOX Business. “So deciding somehow that they don’t need to have skin in the game anymore, that kind of discourages people from succeeding, in my opinion.”

The most aggressive provision of the bill seeks to prevent the secretaries of education and treasury, as well as the attorney general, from taking action to forgive student loan debt, except those taken under of the Higher Education Act 1965.

“It can help people who are irresponsible, but those who work and pay taxes – now they’re going to be burdened with the burden of, if you want to call these other mistakes or managing borrowed money,” DesJarlais argued.

Read more about the story here: Republican House Rep. DesJarlais to Introduce New Bill to Block Biden’s Student Loan Relief

The Federal Reserve is expected to announce another interest rate hike

The Federal Reserve is expected to announce another interest rate hike this week as it seeks to tame searing inflation.

All eyes will be on the Federal Reserve this week, which kicks off its two-day meeting on setting interest rate policy on Tuesday.

On Wednesday, the Federal Reserve will announce its decision on interest rates.

U.S. stocks closed on Friday after consumer inflation jumped 8.6% to a 40-year high and consumer confidence fell to an all-time low, as tracked by the University of Michigan. The Dow Jones Industrial Average fell 880 points or 2.7%, while the S&P lost 2.9% and the Nasdaq Composite 3.5%. For the week, the three main averages were between 4.6% and 5.6%.

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