Dow falls, but narrowly avoids confirmation of bear market status

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Sept 23 (Reuters) – The Dow Jones Industrial Average (.DJI) fell to its lowest level since November 2020 on Friday, but ended just over 20% below a record close of 4 of January

A Dow close below 29,439.72 would have confirmed a bear market that began at that record, according to a widely used definition. read more The Dow fell 486.27 points, or 1.62%, to end at 29,590.41.

The Dow is the only one of the three major indexes that does not have bear market status. The S&P 500 (.SPX) hit that grim milestone in June and the Nasdaq (.IXIC) in March.

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The fresh selling pressure on markets came in a week in which the US Federal Reserve raised interest rates by three-quarters of a percentage point for the third time in a row and pledged to keep them there until inflation is below control

A trader stands under a screen on the trading floor showing the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., September 13, 2022. REUTERS/Andrew Kelly

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It’s been a tumultuous year for Wall Street, plagued by concerns over Russia’s invasion of Ukraine, an energy crisis in Europe and the end of easy money globally.

The S&P 500 has lost 23% this year and the Nasdaq has lost 31%.

The last time all three indexes retreated so sharply was in 2020 during the peak moments of the pandemic sell-off.

Heightened fears of a US economic recession next year and its impact on corporate profits have led brokerages to lower their year-end targets for the S&P 500. read more

Dow Jones Industrials bear markets

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Reporting by Medha Singh in Bangalore; additional reporting by Caroline Valetkevitch; Editing by Shounak Dasgupta, Shinjini Ganguli, Maju Samuel and Diane Craft

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