Dow tumbles 400 points and breaks below 30,000 as recession fears mount

the Dow (INDU) fell 413 points, or 1.4%, in morning trading. The S&P 500 (SPX) fell 1.8% and The Nasdaq (COMP) composite was 2% lower.

The Dow remained below 30,000 points, a level that was briefly exceeded on Thursday. If the Dow ends the day below 30,000, it would be the first time it closed below that barrier since June 17. And a slightly larger plunge could push the index to its two-year low on Friday.

Investors don’t have many places to make money right now: In addition to falling stocks, the bond market is also selling, pushing U.S. Treasury yields to an 11-year high in recent days. The 10-year yield fell slightly on Friday, but remains close to 3.7% and the 2-year yield is above 4.1%. That’s a much better return than you can get with stocks today, so high bond yields put pressure on the stock market.

Wall Street also remains concerned that the Fed’s rate hike plan could continue to raise borrowing costs, hurting corporate earnings that support their stock prices. And if the Fed is serious about slowing the economy to contain runaway inflation, a recession could really hurt consumers who buy the products public companies make.

In other words, there’s a lot to worry about on Wall Street. CNN Business’s Fear and Greed Index has fallen firmly into “Fear” mode in recent days and is approaching “Extreme Fear”. Investors don’t see much to laugh about on the horizon.

Read:Mortgage rates jump again, remain above 6%
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