Global Stock Sell-Off Continues as Economic Concerns Mount

THE NEW YORK TIMES: The losses in China, Japan and Australia followed weakness in the United States, where stocks closed in bear market territory.

The sell-off in stocks continued across the Asia-Pacific region on Tuesday as fears mounted of a recession in the United States and a slowdown in the global economy.

Japan’s Nikkei index fell 1.7 percent in afternoon trading, while China’s Shanghai Composite Index was off 0.5 percent. In Australia, the key stock index tumbled about 4 percent, to its lowest levels in two years.

The market declines followed weakness in the United States, where stocks lost 3.9 percent on Monday to close in bear market territory. After reaching a record high in January, the S&P 500 has fallen more than 20 percent, the seventh bear market in the last 50 years. » | Daisuke Wakabayashi | Tuesday, June 14, 2022

Bear Market Sends Grim Signal of Economic Fears »

The Fed May Discuss the Biggest Interest Rate Increase Since 1994 »

Wall St. Tumbles as Global Sell-off Accelerates.

Screenshot: The New York Times
THE NEW YORK TIMES: U.S. stocks opened in bear market territory on Monday, a 20 percent decline from their peak in January, a sign of growing pessimism about the outlook for the economy.

Markets around the world tumbled, as higher-than-expected inflation and lower-than-expected economic growth upend the outlook for interest rates and corporate profits. Stocks in Asia and Europe fell, investors dumped government bonds, oil prices slipped and cryptocurrencies crashed.

The S&P 500 fell 2.5 percent at the open of trading, as a wave of selling continued. The S&P 500 briefly dipped into bear market territory last month, before recovering to close just above it. The markets have been jittery since, with the S&P 500 last week recording its worst weekly loss since January.

The benchmark U.S. stock index is now “within one bad day’s move of a bear market, and equity futures suggest that we haven’t seen all the negative sentiment expressed yet,” analysts at ING wrote in a note to investors on Monday morning. The S&P 500 has fallen in nine of the past 10 weeks.

A report on Friday showed a surge in inflation in the United States, which rattled markets, as investors worried that the Federal Reserve may have to raise interest rates higher and faster than expected to rein in rising prices, a move that could hit the U.S. economy.

Global investors sold stocks, bonds and other assets, as inflation is running high in many countries, supply chains remain snarled and forecasts for economic growth are being downgraded. » | Alexandra Stevenson and Jason Karaian | Monday, June 13, 2022

What you should know about bear markets: There have been several instances of near-bear markets in recent decades, but it’s rare for them to hit the threshold »

Wall Street chute, inquiète de l’inflation et de la perspective d’une hausse des taux : La Bourse de New York est entrée dans un marché baissier, avec un recul supérieur à 20 % pour le S&P 500 et de 30 % pour le Nasdaq depuis le début de l’année. Lundi, en début de matinée, les deux indices perdaient respectivement 4,15 % et 3,6 %. »

Angst vor schneller steigenden Leitzinsen – Dax fällt auf weniger als 13.500 Punkte: Nachdem die Inflation in Amerika sogar noch einmal gestiegen ist auf deutlich mehr als 8 Prozent, rückt die mächtigste Notenbank der Welt wieder ins Visier der Börse: Straffen die Währungshüter mehr als gedacht? Die Anleger reagieren schon. »

S&P 500 Falls into Bear Market Territory, Down 20% from January High: Live Updates

THE NEW YORK TIMES: Stocks have slipped for seven consecutive weeks, their worst stretch since 2001. The Federal Reserve’s attempts to bring inflation under control are a big reason stock prices are falling.

Stocks dropped on Friday, pushing the S&P 500 into a bear market for the first time since early in the pandemic, as investors feared the effects of higher inflation, rising interest rates and the risk of a recession.

The S&P 500 was down about 1.6 percent in intraday trading, pushing the benchmark index into bear market territory, a Wall Street term for a 20 percent decline from a recent peak — in this case, since Jan. 3. It is a symbolically important marker of investor pessimism, and the index would have to close the day at this level to officially enter a bear market.

The S&P 500 is also on track for its seventh consecutive weekly decline, an unusually long losing streak.

The pessimism in Wall Street has been prompted by fears about stubbornly high inflation and the Federal Reserve’s plans to increase interest rates in response, which could tip the economy into recession. The pandemic, Russia’s invasion of Ukraine and lockdowns in China have added to these concerns. Stocks cross grim threshold after a long slide. » | Jason Karaian and Coral Murphy Marcos | Friday, May 20, 2022

Big Tech Is Getting Clobbered on Wall Street. It’s a Good Time for Them.:Flush with cash, Facebook, Apple, Amazon, Microsoft and Google are positioned to emerge from a downturn stronger and more powerful. As usual. »

A Weak Euro Heads to an Uncomfortable Milestone: Parity With the Dollar: The euro hasn’t fallen below the one-to-one exchange rate with the U.S. dollar for two decades. But as economic risks grow, more analysts predict deeper lows for the shared currency. »