Sell-off across the stock market pushed the S&P 500 into the bear market as negative sentiment across Wall Street deepened.
The losses for the benchmark index follows renewed concerns of a recession, with fears that last week’s hot inflation data would force the US Federal Reserve into taking an even more aggressive approach.
Market analysts now expect the Fed to go for a 0.75% rate hike on Wednesday.
Stocks sell-off heavily
US stocks traded sharply lower on Monday, with the S&P 500 plummeting by 3.88% by markets’ close to officially descend into bear market territory. Washington Post columnist Heather Long commented:
The Dow Jones Industrial Average, which shed 876 points, or 2.79%, is about 17% off its recent highs while the Nasdaq Composite extended its declines by 4.68%.
Amid the bloodbath on Wall Street, the 10-year US Treasury yield jumped more than 20 basis points to hit above 3.36%. It’s the highest level the benchmark yield has risen to since 2011.
Economist Peter Schiff had this to say about the bond yields and oil prices, which was slightly up at $121.09 per barrel.
Bitcoin falls to lowest level since 2020
The sell-off was also intense in the crypto market, as investors reacted to negative news around lending platform Celsius Network. Binance’s temporary pause on BTC withdrawals also ate into sentiment, with Bitcoin (BTC/USD) dipping to intraday lows of $22,725.
Ethereum (ETH/USD) also fell sharply to session lows below $1,200 as sell-off wiped billions of dollars off the broader crypto market capitalization.
BTC/USD was trading around $23,270 early evening on Monday (ET hours), down more than 15% on the 24-hour log. The top cryptocurrency is trading at levels last seen in December 2020.
ETH/USD was down 16% to $1,245.