The stock market resumed its January hemorrhage with losses of more than 3% at midday Monday, as one major index went into what's considered a bear market.
XStock market indexes traded at session lows. The Nasdaq composite plunged 3.6% while the S&P 500 lost 3%. Both are more than 10% below prior highs, and the S&P 500 fell below its 200-day moving average.
The small-cap Russell 2000 was off 2.5%. From its peak on Nov. 8, the Russell has fallen more than 21%. A decline of more than 20% is commonly understood to be a bear market, and it is the first drop of such magnitude for the index since the Covid-19 crash in 2020.
SPDR S&P Midcap 400 (MDY) lost 2% and is at the lowest point since March 2021.
The Dow Jones Industrial Average deepened its loss to 2.4%. Goldman Sachs (GS) gapped down to the lowest level since last April. Walt Disney (DIS) is at the lowest price since November 2020.
Every S&P sector fell, with health care, consumer discretionary, finance, transportation, energy, materials and technology down more than 3%.
Volume rose on the Nasdaq and the NYSE compared with the same time on Friday.
Stock Market Faces Fed, Earnings, Russia
The stock market faces another week of potential volatility.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33446.30 | -819.07 | -2.39 |
| S&P 500 | (0S&P5) | 4266.57 | -131.37 | -2.99 |
| Nasdaq | (0NDQC ) | 13276.66 | -492.26 | -3.58 |
| Russell 2000 | (IWM) | 193.72 | -3.27 | -1.66 |
| IBD 50 | (FFTY) | 36.37 | -1.22 | -3.25 |
Last Update: 12:04 PM ET 1/24/2022 |
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On Wednesday, the Federal Reserve will release its new policy statement. Investors are bracing for a series of interest-rate increases this year as the Fed takes a hawkish stance against inflation.
Some major companies are reporting earnings this week.
Microsoft (MSFT) reports Tuesday. Intel (INTC), Lam Research (LRCX), and Tesla (TSLA) announce results Wednesday. Apple (AAPL) and KLA (KLAC) release their quarterly reports on Thursday.
Microsoft shares fell below the 200-day moving average for the first time since March 2020. Apple, which already had fallen below the 50-day line, is now at risk of losing all gains from its 153.26 buy point.
On the geopolitical front, the U.S. State Department told families of U.S. diplomats in Ukraine to leave the country. Some embassy staff members also were ordered to leave.
Meanwhile, the Biden administration is considering sending several thousand troops to Europe as NATO tries to confront a Russian military buildup and possible assault on Ukraine. NATO also is sending military assets to Eastern Europe.
The standoff is another weight on Wall Street's shoulders. Defense stocks, which usually rally during geopolitical crises, continued falling. SPDR S&P Aerospace & Defense (XAR) ETF fell 2.7% at midday, extending January's loss to 6%.
Not Just Stock Market: Crypto Collapse Continues
A cryptocurrency sell-off continued Monday as investors fled riskier assets. Bitcoin fell to around $33,000 early Monday, according to Coindesk.com, more than half off its record high of nearly $69,000 in November. ProShares Bitcoin Strategy ETF (BITO) skidded 12% to a record low.
Crypto exchange Coinbase Global (COIN) plunged nearly 14% to an all-time low. It went public in April at 250 a share. Riot Blockchain (RIOT) slid 11%. Grayscale Ethereum Trust (ETHE) plummeted 11.5%.
The Innovator IBD 50 (FFTY) ETF lost 4%, heading for a fourth consecutive drop of more than 2%.
Southern Copper (SCCO) gapped down and is below the 67 buy point of a cup base within a larger consolidation. Mastercard (MA) gapped below its 50-day moving average in active trading.
Kohl's (KSS) soared 35% after a group backed by activist hedge fund Starboard Value LP offered to buy the department store chain in a deal valued at about $9 billion, The Wall Street Journal reported. The bid represents a 37% premium over Kohl's closing share price on Friday.
The stock rose above the 62.60 buy point of a cup base. But market risk is high, and if the company is sold, its stock would likely be delisted.
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