S&P 500 falls nearly 4% to a new low for year, closing in bear market territory

• The S&P 500 plummeted 3.88 percent to 3,749.63, its lowest level since March 2021, and it has lost more than 21 percent from its January record.
• Some on Wall Street argue that it is not an official bear market until the index closes below that level, which occurred on Monday.
• The most recent bear market in stocks occurred in March 2020, during the start of the epidemic.

The 2022 stock sell-off accelerated on Monday, with the S&P 500 falling to a new year low and closing in the bear market territory as recession fears mounted before this week’s critical Federal Reserve meeting.

The S&P 500 plummeted 3.88 percent to 3,749.63, its lowest level since March 2021, and it has lost more than 21 percent from its January record. After briefly trading in the bear market territory (down more than 20% from its high) roughly three weeks ago, the benchmark finished in the bear market territory (down more than 20% from its high). Some on Wall Street argue that it is not an official bear market until the index closes below that level, which occurred on Monday. The most recent bear market in stocks occurred in March 2020, during the start of the epidemic.

Read More: Home Loan has dropped to their lowest level in 22 years, as interest rates rise

The Dow Jones Industrial Average fell 876.05 points, or 2.79 percent, to close at 30,516.74, roughly 17% below its all-time high. The Nasdaq Composite fell 4.68 percent to settle at 10,809.23, extending its losses for the week to more than 33 percent.

After a Wall Street Journal article suggested the Fed will consider hiking rates by 0.75 percent on Wednesday, rather than the half-point hike currently predicted, major averages reached session lows in the final 30 minutes.

Read More: Jim Cramer warns traders not to invest in digitization stocks: Recession ‘CPI’

On Monday, there were few places to hide as Treasury bond prices fell, sending the 10-year yield to its highest one-day move since March 2020. Bitcoin lost 15% of its value. Every stock in the S&P 500 was lower at one point during the trading day. Only five of the benchmark’s stocks finished the day in the green.