September 30, 2022

Dow tumbles below 30,000 points

1 min read

Dow (INDU) The market was down 289 points or 1 percent at the open. gave S&P 500 (SPX) fell 1.1 percent and The Nasdaq (COMP) The composite was down 1.1 percent.

The Dow opened below 30,000 points, a level it briefly breached on Thursday. If the Dow ends the day below 30,000, it will close below that barrier for the first time since June 17. And some more broad-based indexes could hit two-year lows on Friday.

Investors don’t have many places to make money right now: In addition to sinking stocks, the bond market is also selling off, sending U.S. Treasury yields to an 11-year high in recent days. The 10-year yield fell back slightly on Friday but remains near 3.7%, and the 2-year yield is above 4.1%. That’s a much better return than you can get with stocks these days, so higher bond yields are putting pressure on the stock market.

Mortgage rates rose to about 6.3 percent, the highest level since 2008.
There is also concern on Wall Street. Fed rate hike plan Borrowing costs could continue to rise, hurting corporate profits that support their stock prices. And if the Fed is serious about slowing the economy to contain runaway inflation, a recession could cause some real pain for consumers who buy products made by publicly traded companies. .

In other words: Wall Street has a lot to worry about. CNN Business’s Fear and Greed Index has fallen firmly into “fear” mode in recent days and is nearing “extreme fear.” Investors don’t see much to smile about on the horizon.

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