Dow poised to confirm bear market status as recession fears mount

Heightened fears of a U.S. economic downturn next year and its impact on corporate profits has prompted brokerages to downgrade their year-end targets for the S&P 500. At 2:11 p.m. ET, the Dow Jones Industrial Average was down 696.04 points, or 2.31%, at 29,380.64, the S&P 500 was down 92.47 points, or 2.46%, at 3,665.52, and the Nasdaq Composite was down 274.44 points, or 2.48%, at 10,792.37.

The blue-chip Dow Jones Industrial Average tumbled on Friday, on pace to confirm that it has been in a bear market after it fell 20% from its January record high. The Dow would be the last of the three main indexes to gain the bear market status after the S&P 500 notched that grim milestone in June and the Nasdaq in March.

If the Dow closes below 29,439.72 points, it would confirm a bear market that began from Jan. 4, according to a widely used definition. The renewed selling pressure in markets comes in a week that saw the U.S. Federal Reserve raise interest rates by three-quarters of a percentage point for a third straight time and a vow to keep it going until inflation is under control.

It has been a tumultuous year for Wall Street, plagued by worries about Russia's invasion of Ukraine, an energy crisis in Europe and the end of easy money policy globally. The S&P 500 has lost 23% this year and the Nasdaq has shed 31%.

The last time the three indexes pulled back so sharply was in 2020 during the heights of the pandemic selloff. Heightened fears of a U.S. economic downturn next year and its impact on corporate profits has prompted brokerages to downgrade their year-end targets for the S&P 500.

At 2:11 p.m. ET, the Dow Jones Industrial Average was down 696.04 points, or 2.31%, at 29,380.64, the S&P 500 was down 92.47 points, or 2.46%, at 3,665.52, and the Nasdaq Composite was down 274.44 points, or 2.48%, at 10,792.37.

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