Stocks Dive as Investors Attempt to Navigate Bear Market

Stocks Dive as Investors Attempt to Navigate Bear Market

Wall Street Journal: The S&P 500 and the Nasdaq Composite fell Tuesday in volatile trading, upended by Bank of England Gov. Andrew Bailey’s remark that the U.K. central bank’s plan to rescue pension funds hit by interest-rate increases will end as scheduled Friday. The Nasdaq Composite slipped into a bear market, its second of the year. The S&P 500 and the Dow are already in bear markets, defined in Wall Street parlance as a decline of 20% or more from a recent peak. Stocks had opened lower, with investors weighing how higher interest rates and soaring inflation will affect the upcoming earnings season. Stocks turned higher at midday, then reversed course in the final hour of trading after Mr. Bailey’s comments (Wall Street Journal). CNBC: Investors are awaiting a few key inflation reports out later in the week that will inform how aggressively the Federal Reserve will hike interest rates going forward to tame inflation. On Wednesday, the producer price report will be released. That’s followed by the September consumer price index Thursday. On Friday, September retail sales will give further insight into consumption. The path of the central bank’s interest rate increases will determine whether or not the U.S. economy falls into a recession or experiences a soft landing (CNBC).