Sept. 27 (BP) — The Dow Jones Industrial Average and S&P 500 fell for the sixth straight day Tuesday to new bear market lows as Wall Street continued its tumultuous ride amid fears of a recession.
The Dow Jones Industrial Average closed down 125.82 points, or 0.43%, to end the day at 29,134.99 after gaining almost 400 points during earlier trading. The S&P 500 dropped 7.75 points, or 0.21%, to 3,647.29. The Nasdaq Composite edged up 26.58 points, or 0.25%, to 10,829.5.
“We’re still concerned that the Fed is going to overdo it and push the economy into a recession,” said Art Hogan, chief market strategist at B. Riley Financial, according to CNBC.
The Dow officially entered a bear market on Monday, falling by more than 20% from its previous high to its lowest level since 2020. Tuesdays losses brought the index to 21.1% below its high of 36,939.84 in January. It was the last of the three major U.S. markets to enter a bear market.
The S&P 500, which entered a bear market in June, fell 24.3% below its January record Tuesday, also to its lowest level since 2020. The Nasdaq, which entered a bear market in March, is 33% below its November high.
Analysts expect further losses, with JPMorgan predicting the S&P 500 will bottom out between 3,000 and 3,400 by the end of this year or early 2023, Forbes reported.
The U.S. 10-Year Treasury climbed to 3.97%, approaching the 4% mark not seen since 2008. The 2-year rate dipped in early trading but closed nearly flat at 4.31%.
Energy companies and cruise lines were among the best performing companies on Tuesday.
Shell and Exxon Mobil rose 2.7% and 2.1%, respectively.
Cruise lines rallied following news that Canada would drop its COVID-19 travel restrictions. Royal Caribbean Group gained 7.4%, Norwegian Cruise Line Holdings rose 6.9%, and Carnival climbed 6.7%.