Canada markets open in 9 hours 2 minutes
  • S&P/TSX

    19,235.09
    -135.90 (-0.70%)
     
  • S&P 500

    3,783.28
    -7.65 (-0.20%)
     
  • DOW

    30,273.87
    -42.45 (-0.14%)
     
  • CAD/USD

    0.7364
    +0.0018 (+0.25%)
     
  • CRUDE OIL

    87.88
    +0.12 (+0.14%)
     
  • BTC-CAD

    27,694.38
    +135.56 (+0.49%)
     
  • CMC Crypto 200

    463.46
    +5.05 (+1.10%)
     
  • GOLD FUTURES

    1,730.30
    +9.50 (+0.55%)
     
  • RUSSELL 2000

    1,762.69
    -13.07 (-0.74%)
     
  • 10-Yr Bond

    3.7590
    -3.6170 (-100.00%)
     
  • NASDAQ futures

    11,685.50
    +61.75 (+0.53%)
     
  • VOLATILITY

    28.55
    -0.52 (-1.79%)
     
  • FTSE

    7,052.62
    -33.84 (-0.48%)
     
  • NIKKEI 225

    27,362.02
    +241.49 (+0.89%)
     
  • CAD/EUR

    0.7427
    0.0000 (0.00%)
     

Dow drops but narrowly avoids confirming bear market status

·1 min read
FILE PHOTO: A screen charts the Dow Jones Industrial Average during the trading day on the floor of the NYSE in New York

(Fixes typo in headline)

By Medha Singh

(Reuters) -The blue-chip Dow Jones Industrial Average tumbled to its lowest level since November 2020 on Friday, but narrowly missed ending more than 20% below its Jan. 4 closing record high.

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

The Dow is the only one of the three main indexes not to have bear market status. The S&P 500 notched that grim milestone in June and the Nasdaq in March.

The renewed selling pressure in markets came in a week that saw the U.S. Federal Reserve raise interest rates by three-quarters of a percentage point for a third straight time and a vow to keep it going until inflation is under control.

It has been a tumultuous year for Wall Street, plagued by worries about Russia's invasion of Ukraine, an energy crisis in Europe and the end of easy money policy globally.

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

The last time the three indexes pulled back so sharply was in 2020 during the heights of the pandemic selloff.

Heightened fears of a U.S. economic downturn next year and its impact on corporate profits has prompted brokerages to downgrade their year-end targets for the S&P 500.

(Reporting by Medha Singh in Bengaluru; additional reporting by Caroline Valetkevitch in New York; Editing by Shounak Dasgupta, Shinjini Ganguli, Maju Samuel and Diane Craft)