S&P 500 takes a dive following worrisome inflation report
Wall Street took a big hit on Monday, with the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite dropping 3.9 percent, 2.8 percent, and 4.7 percent, respectively.
The plunge, which pushes the market into bear territory, is largely interpreted as a reaction to Friday's less-than-stellar consumer price index report, which saw inflation jump 8.6 percent from a year ago in May. Investors are also concerned at how aggressively the Federal Reserve is planning to act to tame said inflation; the central bank is meeting to discuss yet another interest rate hike this week.
"It seems as though inflation is staying for longer than expected," Kiran Hanesh, multi-asset strategist at UBS, told The Wall Street Journal. "People are now beginning to fear that the Fed will have to go further or faster in terms of interest rates."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Cryptocurrencies were hit especially hard on Monday, notes The Associated Press, with Bitcoin falling roughly 15 percent from 24 hours earlier. Ethereum also fell 17 percent over the same period, while shares of Coinbase Global were down almost 12 percent, the Journal adds. Tech stocks, meanwhile, were also "set for big declines" — Apple and Amazon shares, for example, were down 3.8 percent and 5.5 percent, respectively.
"This is what you call a bear market," Todd Morgan of Bel Air Investment Advisors told the Journal, "where fear is taking place and pushing people out of the market and having people empty up portfolios and capitulate."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
What are the options for covering long-term care?
The explainer Nursing homes are expensive, but there are smart ways to start saving
By Becca Stanek, The Week US Published
-
Slain journalists are getting a one-of-a-kind memorial
In the Spotlight The memorial will be located on the National Mall in Washington, D.C.
By Justin Klawans, The Week US Published
-
Crossword: September 18, 2024
The Week's daily crossword
By The Week Staff Published
-
US inflation drops below 3%, teeing up rate cuts
Speed Read This solidifies expectations that the Federal Reserve will finally cut interest rates in September
By Peter Weber, The Week US Published
-
Why are global stock markets plunging?
Today's Big Question Europe, Asia and Wall Street have all suffered big falls after US economy data spooked investors
By Rebekah Evans, The Week UK Published
-
Would Trump's tariff proposals lift the US economy or break it?
Talking Points Economists say fees would raise prices for American families
By Joel Mathis, The Week US Published
-
US inflation cools further in welcome sign for economy
Speed Read Prices fell in June for the first time in four years
By Rafi Schwartz, The Week US Published
-
The big deal: Why are fast-food chains suddenly offering discounts?
Today's Big Question After inflation and price hikes, a need to bring customers back
By Joel Mathis, The Week US Published
-
What are meme stocks and why are they back?
The Explainer Like it or not, GameStop and AMC are back on Wall Street
By Justin Klawans, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published