By William Watts
Global stocks fall as central banks stoke recession fears
A lousy Friday for global equities led to a sharp bearish start for Wall Street as investors eye a potential retest of crucial support on the price charts at June lows.
The Dow Jones Industrial Average, in fact, was down 390 points, or 1.3%, at 29,687, trading below its June 17 closing low of 29,888.78, and leaving the prime gauge order not far from the threshold to enter a bear market. A finish at or below 29,439.72 would mark a 20% drop from the DJIA’s closing record of 36,799.65 set on January 4, which would meet the widely used definition of a bear market.
The big question, however, remains around the broader S&P 500 index and the potential for the most followed large-cap benchmark to pull out its June 16 closing low at 3,666.67 or its low. June intraday just below 3,637. The S&P 500 fell 65 points, or 1.7% near 3,693, after ending Thursday at 3,757.99, up 2.5% from the low. closing on June 16.
Global stocks fell sharply on Friday, with US stocks suffering steep losses on Wall Street as the market opened. Earlier this week, the Federal Reserve made another outsized interest rate hike and signaled it would drive rates higher than market participants had previously expected. A number of other global central banks also raised rates this week, underscoring investor concerns about the economic outlook.
(END) Dow Jones Newswire
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