US stocks sunk to a new low on Monday as the S&P 500 fell 3.9 per cent to 3,749.82 entering the “bear market” phase.
Wall Street stocks fell for the fourth consecutive day on Monday amid fears of a recession. The S&P touched its lowest since March last year down 20 per cent from its high.
The Down Jones fell 876 points to settle at 30,516.74 which was 17 per cent below its recorded high even as the Nasdaq fell 4.68 per cent to close at 10,809.23.
Stocks fell amid reports the US Federal Reserve may raise rates by 0.75 per cent. Experts fear rising inflation may trigger a recession as investors sold stocks on Monday.
It is the first time S&P 500 entered the bear market since the 2020 Wall Street plunge due to the coronavirus pandemic in 2020.
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The Dow was dragged down by American Express, Boeing and Salesforce as tech stocks Netflix, Tesla and Nvidia also dived. The Nasdaq touched a new one-year low for the first time since November 2020.
Other stocks including Carnival Corporation and Norwegian Cruise Line also plummeted with Delta Airlines crashing eight per cent.
The bloodbath continued in the communication, and information technology stocks as well. Last weekend premium gasoline prices had surpassed $5 a gallon for the first time in the United States triggering fresh concerns over spiralling oil prices.
(With inputs from Agencies)
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