Damian J. TRUAZ
NEW YORK (AP) – Shares fell in the morning trading on Wall Street on Thursday, deepening the fall of major indexes as persistently high inflation continues to put pressure on the economy.
The S&P 500, a benchmark for many index funds, is coming out of its biggest drop in almost two years. It fell another 0.4% and almost 19% from a record high set earlier this year. It’s just ashamed of the 20% point that defines the bear market. The last bear market took place just two years ago, after the start of the virus pandemic.
The Dow Jones Industrial Average fell 279 points, or 0.9% as of 10:02 a.m. in the east, and the Nasdaq was up 0.3%.
Rising interest rates, high inflation, the war in Ukraine and the slowdown in China’s economy have forced investors to reconsider the prices they are willing to pay for a wide range of stocks, from high-tech companies to traditional automakers. Investors were concerned that sharp inflation, which harms people who buy groceries and refuel their cars, also reduces companies ’profits.
Target fell another 3.6% the day after losing a quarter of its value due to a surprisingly weak earnings report.
Wall Street is also concerned about the Federal Reserve’s plan to fight the highest inflation in four decades. The Fed is aggressively raising interest rates, and investors are worried that the central bank could cause a recession if it raises rates too high or too fast.