As the dollar soars, the S&P 500 makes a new closing low for 2022 and the Dow enters a bear market.
The S&P 500 fell 1.03% to 3,655.04, breaking through the closing low of 3,666.77 set in June. The index fell to 3,644.76 at one point in the day, only eight points above its intraday low from 2022: 3,636.87.
The Dow lost 329.60 points, or 1.11%, to end the day’s trading at 29,260.81. Losses escalated in the closing minutes of trade. The 30-stock index has decreased by around 20.4% since its closing high on January 4. To 10,802.92, the Nasdaq Composite dropped 0.6%.
On Monday, the British pound hit an all-time low against the US dollar, plunging as much as 4% at one point to $1.0382. Since then, the pound has recovered from its lowest points amid concerns that the Bank of England may need to hike rates more quickly in order to contain inflation.
The aggressive rate hike campaign by the Federal Reserve and the U.K.’s tax cuts, which were announced last week, have driven up the value of the US dollar.The euro dropped to its lowest level versus the dollar since 2002.. Since so much Since the majority of global commerce is handled in dollars, a rising currency has the potential to both severely disrupt and hurt the profits of American multinational firms.
According to Michael Wilson, chief U.S. equities strategist at Morgan Stanley, “Such U.S. dollar strength has typically resulted in some form of financial/economic disaster.” “This would be the time to be on the watch for anything to break,” someone once said.
On Monday, bond rates skyrocketed, with the 10-year Treasury yield reaching a high of 3.9% at one point in the day. Its peak level since 2010 is that.
the lowest level of West Texas Intermediate crude since January has been reached.
The benchmark for American oil, West Texas Intermediate crude, fell 2.58% to close the day at $76.71. Since January 3, it’s the commodity’s lowest settle ever.
The price of Brent crude dropped by 2.43% to $86.06. It has previously traded as low as $83.81, its lowest price since January 13.
Oil prices rose earlier this year as a result of Russia’s invasion of Ukraine, but more recent drops have drastically reduced the commodity’s profits until 2022. While Brent is up 8.07% for the year, WTI is only up 1.99%.
Match Group and Organon are trading at record lows.
Tinder, Hinge, OkCupid, and Match.com’s parent firm initially went public through an initial public offering. With effect from today, it trades on the Nasdaq under the symbol MTCH.
Monday’s price for Match Group was $46.75, down around 1.2%. The corporation’s lowest valuation since becoming a publicly listed company was reached when shares traded as low as $46.19.