NATIONAL NEWS

Dow plunges and is back in a bear market

Sep 29, 2022, 12:38 PM | Updated: Oct 6, 2022, 3:12 pm

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 2...

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2022. REUTERS/Brendan McDermid

(NYSE)

(CNN) — The third quarter is about to end and investors are wishing the past nine months good riddance. Stocks fell Thursday, giving up Wednesday’s big gains. The Dow was down almost 650 points, or 2.1%, in midday trading.

The Dow is now back in bear market territory, more than 20% below the all-time high it set in January. The S&P 500, one of the broadest measures of the health of Corporate America, fell 2.7% Thursday and has plunged about 24% this year.

The tech-laden Nasdaq Composite sank 3.6% Thursday and has plummeted even more than the Dow and S&P in 2022. Major stock exchanges in the UKEurope and Asia have all dropped sharply this year as well.

The stock market had a promising start to the quarter, soaring in July. But fears about inflation, rate hikes, rising bond yields and recession returned with a vengeance in August and September.

drop in weekly jobless claims spooked investors Thursday. The job market remains relatively healthy, even as the broader economy has contracted. Traders are betting that the labor market strength will keep pressure on the Federal Reserve to continue raising interest rates aggressively for the rest of this year and in 2023.

The CNN Business Fear & Greed Index, which measures seven indicators of market sentiment, sank further into Extreme Fear territory.

It’s not just stocks that have tumbled. It’s the bear market for just about everything. There have been few places for investors to run and hide this year. Bond yields have surged, which means that prices are down. That weighs on returns.

Bonds are supposed to be safe havens during times of market and economic volatility. But two popular, widely held bond funds, the Vanguard Total Bond Market Index Fund ETF and iShares Core U.S. Aggregate Bond ETF, are both down nearly 16% in 2022.

Think gold is a good place to ride out the storm? The price of the yellow metal is down 10% this year. And forget about cryptocurrencies. Bitcoin prices have fallen off a cliff, plummeting nearly 60% in 2022.

Still, there are some winners even in this brutal market environment. Oil prices are up for the year, partly due to supply concerns in Europe resulting from Russia’s invasion of Ukraine. Energy giant Chevron is the best performing stock in the Dow this year while Warren Buffett-backed Occidental Petroleum leads the S&P 500.

Healthcare stocks, typically a defensive sector that holds up better during tough economic times, have done well too. Pharma giant Merck, biotech Amgen and insurer UnitedHealth are all up this year and are the top stocks in the Dow after Chevron.

The-CNN-Wire ™ & © 2022 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

National News

FILE - Left to right, clockwise: Twitter former executives Vijaya Gadde, Parag Agrawal, Ned Segal, ...

Brian Fung and Clare Duffy, CNN

Former Twitter execs sue Elon Musk over severance payments

A group of former Twitter executives sued Elon Musk on Monday in a bid to recover more than $128 million in severance that they allege Musk has not paid since he acquired the company, now called X, more than a year ago.

2 hours ago

Idaho State Police released aerial photos of a string of crash sties on Interstate 84 on March 4, 2...

Mary Culbertson

63 cars, semitrucks crash on I-84 following winter storm

Idaho State Police responded to a string of crashes on I-84 Monday morning, closing miles of the interstate for hours.

3 hours ago

Tova Callender, left, and Christiane Keyhani of Hui O Ka Wai Ola, collect water samples at the Mala...

AUDREY McAVOY Associated Press

In Hawaii, coral is the foundation of life. What happened to it after the Lahaina wildfire?

For now, state officials are urging the public to limit their exposure to the ocean and seafood until scientists understand what might be making its way through the food chain.

5 hours ago

Cookie Monster has taken to X to express his frustration over shrinking products, aka: "shrinkflati...

Bryan Mena, CNN

Even Cookie Monster is complaining about the US economy now

Cookie Monster has taken a stance on a very real and controversial trend in the US economy — and he hates it.

5 hours ago

Thousands of pounds of Trader Joe's chicken soup dumplings have been recalled due to possible conta...

Jamie Gumbrecht, CNN

61,000 pounds of Trader Joe’s chicken soup dumplings recalled due to possible contamination with hard plastic

More than 61,000 pounds Trader Joe’s steamed chicken soup dumplings are being recalled due to possible contamination with hard plastic from a permanent marker.

5 hours ago

The Federal Aviation Administration has found multiple problems with Boeing’s production practice...

Pete Muntean, Gregory Wallace and Chris Isidore, CNN

FAA finds ‘multiple instances’ of Boeing quality control issues

The Federal Aviation Administration has found multiple problems with Boeing’s production practices following a six-week audit triggered by the January 5 door plug blowout on an Alaska Airlines’ Boeing 737 Max 9.

5 hours ago

Sponsored Articles

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Users display warnings about the use of artificial intelligence (AI), access to malicious software ...

Les Olson

How to Stay Safe from Cybersecurity Threats

Read our tips for reading for how to respond to rising cybersecurity threats in 2023 and beyond to keep yourself and your company safe.

Dow plunges and is back in a bear market