Dow Jones in bear market, fell 700 points By

By Carjuan Cruz – The market is tumbling this Friday, with the market losing as much as 700 points, sinking to its low for the year and falling into bear market territory.

The sell-off continues, taking Wall Street into its fifth week of decline, with the Dow Jones down 4.5%, the S&P 500 5.2%, and the 5.5% in the last five days.

Concerns about the aggressive monetary policy of the United States Federal Reserve sparked fears about the consequences for the economy, corporate profitability, and the stock market.

The Fed decided to apply a third and large adjustment of 75 bps in interest rates this week, but also announced that it projects interest rates at 4.4% by the end of this year, and 4.6% by 2023, with six members wanting to aim higher.

“The market has been moving clearly and quickly from concerns about inflation to concerns about the Fed’s aggressive campaign,” a CNBC report quotes financial expert Quincy Krosby from LPL Financial.

The US central bank reiterated again that it will not cool down its tightening strategy until “the job is done”, referring to finally taming high inflation, even if the process warrants a slower growth trend. The market assumes this message implies a recession

“You see bond yields rising to levels we haven’t seen in years — it’s changing mindsets about how the Fed achieves price stability without something breaking down,” he added.

The fallout on the economy, corporate profitability, company valuations, and the stock market heighten concerns in the market and trigger risk aversion and these sharp sell-offs today.

In fact, the investment bank Goldman Sachs (NYSE:) came forward to change its outlook today, and cut its target for the S&P 500, pointing to it ending the year at 3,600 points, a drop of 16%, after its estimate Previously it was 4,300 points. Today the index is at 3,681 points.

“Most equity investors have taken the view that a hard landing scenario is inevitable and their attention is focused on the timing, magnitude and duration of a potential downturn,” Goldman Sachs said.

The Dow Jones trims mid-day losses, now shedding 582 points or 1.94%. The falls 79 points or 2.11%, and the Nasdaq loses 280 points or 2.09%

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