The S&P benchmark fell for four consecutive days, with the index now falling more than 20% from its most recent record to close its high to confirm that a bear market started on January 3, according to a widely used definition . All major S&P sectors were significantly lower, with only about 10 S&P 500 positives per day. Markets came under pressure this year as rising prices, including rising oil prices due in part to the war in Ukraine, led the Fed to take strong steps to tighten monetary policy, such as raising interest rates. Sign up now for FREE unlimited access to Reuters.com Register The Fed is scheduled to make its next policy announcement on Wednesday, and investors will be particularly focused on indications of how aggressive the central bank intends to be in raising interest rates. read more A warmer-than-expected Consumer Price Index (CPI) on Friday pushed traders to trade a total of 175 basis points (bps) in interest rate hikes through September, while expectations for a 75 basis point increase at the June meeting have soared. to almost 30% from 3.1% a week ago, according to CME’s Fedwatch Tool. “The market has been trying to rally around the idea that inflation has peaked and the Fed should not be more aggressive,” said Ross Mayfield, an investment strategy analyst at Baird in Louisville, Kentucky. “This story collapsed on Friday with the CPI report, showing that high inflation is entrenched wherever you look.” According to preliminary data, the S&P 500 (.SPX) lost 149.91 points or 3.85%, closing at 3,750.95 points, while the Nasdaq Composite (.IXIC) lost 526.82 points or 4.65% at 10,813.20 units. The Dow Jones Industrial Average (.DJI) fell 857.70 points or 2.73%, to 30,535.09. S&P 500 bear markets In addition, the yield curve of the two-year 10-year US bond was reversed for the first time since April, which many in the markets see as a credible signal that there may be a recession in the next year or two. read more The Nasdaq Composite Index (.IXIC), which fell for the fourth consecutive time, confirmed that it was in a bear market on March 7 and has fallen about 30% this year. The CBOE (.VIX) volatility index, also known as the Wall Street Fear Index, jumped to its highest level since May. However, many analysts consider the level to be subdued and could mean that there is more selling pressure. “This is a market that does not seem to be capitulating as much as it is frustrated,” said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle. “Even with some titles being rejected, it’s just not deep enough, violent enough to see that people have taken positions. for 2022 Shares related to cryptocurrencies and blockchain, including Riot Blockchain (RIOT.O), Marathon Digital Holdings (MARA.O) and Coinbase Global (COIN.O), sank as bitcoin fell more than 10% after the big US company Celsius cryptocurrency lending The network froze withdrawals and transfers citing “extreme” conditions. Sign up now for FREE unlimited access to Reuters.com Register Additional references by Lewis Krauskopf, Stephen Culp and Noel Randewich. Edited by Aurora Ellis Our role models: The Thomson Reuters Trust Principles.
