Dow plunges 485 points to hit new closing low for the year as interest rate and recession fears roil markets

Traders work on the floor of the New York Stock Exchange

US stocks tumbled again on Friday, with the Dow plunging more than 500 points.
Markets continued to reel from the Fed’s rate hike and hawkish forecasts earlier in the week.
US oil prices sank below $80 a barrel as recession fears rose and the dollar hit a fresh 20-year high.

US stocks sold off for a fourth straight day on Friday as fears of higher interest rates and slowing economic growth continued to roil markets.

The Dow Jones Industrial Average entered a bear market intraday after falling 20% from its last high, and hits its lowest close of 2022, dipping below the previous low of s 29,888.78 on June 17. S&P Global’s Purchasing Managers’ Index, a broad gauge of economic health, dropped to 48.2 in September from 48.9 last month, showing that business activity contracted at a faster pace.

That underscored fears that a wave of rate hikes this week from the Federal Reserve and other central banks will snuff out economic growth. For the week, the Dow lost 4.5%, the S&P 500 gave up 5.2%, and the Nasdaq tumbled 5.5%.

Here’s where US indexes stood as the market closed at 4 p.m. on Friday: 


S&P 500: 3,693.49, down 1.72% Dow Jones Industrial Average: 29,591.47, down 1.61% (485.21 points)Nasdaq Composite10,867.93, down 1.8%

Here’s what else is happening today: 

Goldman Sachs slashed its year-end forecast for the S&P 500, and warned that the Fed’s aggressive policy path will lead to further sell-offs in stocks.  But Fundstrat’s Tom Lee remains resolute in his view that the stock market will soar into year-end.Russia plans to cut natural gas exports by 40% over the next three years, according to a Bloomberg report. Europe is scrambling to put a price cap on Russian oil and it is likely to be included in new sanctions proposals. 

In commodities, bonds and crypto:

Oil prices dropped, with West Texas Intermediate down 5.6% to $78.85 a barrel. Brent crude, the international benchmark, shed 4.7% to $86.24 a barrel.Gold fell 1.8% to $1,650.90 per ounce.The 10-year yield ticked 2.7 basis points lower to 3.681%.Bitcoin slipped 2.7% to $18,809.

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