Business

Dow falls below June low — here’s what it would take to enter bear market

An ugly Friday for global equities led to a sharply lower start for Wall Street as investors eyed a possible retest of crucial support on the price charts at the June lows.

The Dow Jones Industrial Average DJIA,
-1.45%,
in fact, it fell 390 points or 1.3% to 29,687, trading below the June 17 closing price of 29,888.78, leaving the blue-chip meter not far from the threshold to enter a bear market. A finish at or below 29,439.72 would be a 20% drop from the DJIA’s record of 36,799.65 on Jan. 4, which would fit the commonly used definition of a bear market.

However, big demand remains around the broader S&P 500 index SPX,
-1.73%
and the potential for the better-tracked large-cap benchmark to hit its June 16 close low at 3,666.67 or its June intraday low just below 3,637. The S&P 500 fell 65 points, or 1.7% near 3,693, after finishing Thursday at 3,757.99, up 2.5% from its June 16 low.

Read:Economics 101: With demand outrunning supply, the local housing market has taken on new, competition-driven traits

Global equities fell sharply on Friday, with US stocks taking heavy losses on Wall Street as the market opened. The Federal Reserve implemented another outrageous rate hike earlier this week, signaling that interest rates would turn higher than market participants had previously expected. A number of other global central banks also hiked interest rates this week, highlighting investor concerns about the economic outlook.

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