The Tell: S&P 500 sees its third leg down of more than 10%. Here’s what history shows about past bear markets hitting new lows from there, according to Bespoke.

by | Sep 21, 2022 | Stock Market

Stocks fell sharply after the Federal Reserve announced Wednesday that it was raising its benchmark rate by three-quarters of a percentage point as it battles inflation, with the S&P 500 continuing a slide described by Bespoke Investment Group as its third leg down.   “Where this bear market ultimately bottoms is anyone’s guess, and events outside of the Fed’s control will likely play a role in where the market finally ends up,” Bespoke said in a note emailed Wednesday. “In times like this, though, it’s always nice to look at how the current period compares to other periods, if for no other reason than to see how bad we have it or how much worse it can get.”

The S&P 500, which hit a record high on Jan. 3, has sunk 20.5% so far this year, according to FactSet data. The index dropped 1.7% Wednesday for its largest drop since Sept. 13, the day inflation data released for August came in hotter than expected.  The S&P 500 is down more than 10% from its August high, its third such leg down in the current bear market, according to Bespoke, though it’s still above its June low. The firm studied past bear markets during the post-World War II period that began at all-time highs and saw at least three legs down of 10% or more before the S&P 500 ulti …

Article Attribution | Read More at Article Source

Share This