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Saturday, April 1, 2023

Dow Slides 700 Points as S&P 500 Falls Back into Bear market

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Stocks tumbled Monday, pushing the S&P 500 back into bear market territory, as the major averages came off their worst week since January.

The Dow Jones Industrial Average dropped 730 points, or 2.3%, the S&P 500 fell 3% and the Nasdaq Composite tumbled 3.6%.

The S&P 500 hit a new intraday low for the year and its lowest level since March 2021 as all of the benchmark’s stocks traded in the red. It’s off nearly 21% from its record, back in bear market territory after trading there briefly on an intraday basis about three weeks ago.

The benchmark now sits more than 20% from its January record close. If it finishes there on Monday, it will confirm a bear market to many on Wall Street.

“The odds of a ‘June Swoon’ straight to 3,400 have gone up significantly, in our view,” wrote Jonathan Krinsky, technical analyst for BTIG. The S&P 500 closed Friday at 3,900.86.

“We thought a momentum reversion where winners got bought and losers sold would create chop at the index level, but last week is a reminder that the risk continues to be to the downside,” Krinsky added.

Monday’s sell-off was broad-based, with roughly 26 New York Stock Exchange-listed stocks trading lower for every advancer.

Shares of Boeing, Chevron and Dow fell more than 7%, 5%, and 4.8%, respectively, dragging down the Dow. Beaten-up tech shares also took a hit with Netflix, Amazon and Nvidia down more than 6% as the Nasdaq touched a fresh 52-week low and its lowest level since November 2020.

Travel stocks also slipped on Monday, with Carnival Corporation and Norwegian Cruise Line down about 10% each. Delta Air Lines and United also fell more than 7% and 8%, respectively.

All major S&P 500 sectors dipped into the red, with energy and consumer discretionary down 5% and 3.8%, respectively.

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