Dow poised to confirm bear market status as recession fears mount

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Sept 23 (Reuters) – The blue-chip Dow Jones Industrial Average (.DJI) plunged Friday, picking up pace to confirm it has been in a bear market after falling 20% ​​from its January record.

The Dow would be the last of the three major indices to gain bear market status after the S&P 500 (.SPX) hit that grim milestone in June and the Nasdaq (.IXIC) in March.

If the Dow closes below 29,439.72 points, this would confirm a bear market that started on January 4, according to a commonly used definition.

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The renewed selling pressure on the markets comes in a week in which the US Federal Reserve has raised interest rates by three-quarters of a percentage point for the third time in a row and pledged to continue until inflation is under control.

It has been a tumultuous year for Wall Street, plagued by concerns over the Russian invasion of Ukraine, an energy crisis in Europe and the end of a global easy money policy.

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

The last time the three indices fell so sharply was in 2020 during the peaks of the pandemic sell-off.

Increased fears of an economic downturn in the US next year and its impact on corporate earnings has prompted brokers to lower their year-end targets for the S&P 500. read more

At 2:11 p.m. ET, the Dow Jones Industrial Average (.DJI) fell 696.04 points, or 2.31%, at 29,380.64, the S&P 500 (.SPX) fell 92.47 points, or 2.46% , at 3,665.52 and the Nasdaq Composite (.IXIC) fell 274.44 points, or 2.48%, to 10,792.37.

Dow Jones Industrials Bear Markets

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Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta, Shinjini Ganguli and Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

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