The S&P 500 closes at a new 2022 low as Apple directs a broad sell-off in the market

Stocks resumed their 2022 selloff on Thursday, sending the S&P 500 to a new low for the year and its lowest intraday level since 2020, as fears swirled that a recession won’t prevent the Federal Reserve from raise interest rates.

The selloff was widespread and led by Apple, which fell as a major investment bank downgraded the former bear market outperformer. The stock closed down 4.9%.

The S&P 500 fell 2.1% to 3,640.47 in a new closing low for the year. It also fell to a new 2022 intraday low at 3610.40 during the session.

Meanwhile, the Dow Jones Industrial Average plunged 458.13 points, or 1.54%, while the tech-heavy Nasdaq Composite fell 2.84%.

The moves followed a broad rally for stocks on Wednesday as the Bank of England announced it would buy bonds in a bid to help stabilize its financial markets and the cratering pound. The British pound has fallen to record lows against the US dollar in recent days.

On Wednesday, the Dow Jones gained more than 500 points, or 1.9%, while the S&P 500 rose nearly 2%, both snapping six-day losing streaks.

“[We] remain skeptical that Wednesday’s calmer mood in markets marks the end of the recent period of elevated volatility or risk aversion sentiment,” UBS’s Mark Haefele wrote in a Thursday note. “For a stronger rally, investors will need to see evidence that inflation is under control, allowing central banks to become less hawkish.”

The 10-year US Treasury yield rebounded to trade at around 3.749%. The day before, it had recorded its biggest one-day drop since 2020 after briefly exceeding 4%.

A stronger than expected jobless claims report did not help sentiment. This was based on the idea that the Fed would continue to raise rates to fight inflation without fear that it would hurt the labor market.

Cleveland Federal Reserve Chair Loretta Mester said during a Thursday appearance on CNBC’s “Squawk Box” that interest rates aren’t restrictive yet, saying there’s still a long way to go to reduce inflation.

Wednesday’s rally put major averages on pace for a losing week and their worst month since June. The Nasdaq Composite leads the monthly losses, down 9.1%, while the Dow Jones and S&P are poised to close down 7.3% and 8% respectively.

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