Stocks Stumble Into Bear Market Territory

·2-min read

UPDATED, 4:05 p.m. ET: Worries over high inflation continued to weigh on Wall Street Monday, as financial markets extended their slide and the S&P 500 crossed a key bear-market indicator.

The S&P 500 index, which comprises 500 large public U.S. companies, closed down 3.87% in regular trading. Year to date, the index currently is off 21.8%, surpassing the 20% threshold that is the unofficial signal of a bear market.

More from Variety

The broad sell-off — with every stock in the S&P 500 dropping Monday — comes after the U.S. experienced its highest rate of inflation in May 2022 in four decades. The Dow Jones Industrial Average declined 2.79%, shedding 874.73 points in Monday trading, and the tech-centric Nasdaq Composite Index fell 4.68%.

Media and tech stocks were sucked down in the market drop, with Monday’s losers including Paramount Global (-8.1%), Disney (-3.7%), Netflix (-7.2%), and Warner Bros. Discovery (-5.6%).

Shares of Live Nation Entertainment dropped 8%, and the stock is down 30% year to date. Tech shares sliding in Monday trading included Apple (-3.8%), Amazon (-5.5%), Meta Platforms (-6.4%) Alphabet (-4.1%) and Twitter (-5%).

The steep market drops in 2022 have wiped out billions of dollars in market value. Netflix has shed about $190 billion in market capitalization (to currently around $75.4 billion). Disney’s market cap is about $174 billion today, a loss of some $110 billion year to date. Meta, parent company of Facebook and Instagram, has seen its market value a little more than halved this year, to around $444.5 billion.

Investors are expecting the Federal Reserve to announce Wednesday that it will raise interest rates more aggressively than the half-point hike that was previously signaled, according to the Wall Street Journal. The Labor Department on Friday, June 10, reported the fastest annual increase in the consumer-price index in May 2022 — up 8.6% compared with a year earlier — since 1981.

Cryptocurrency values are also crashing, with Bitcoin hitting an 18-month low and dropping 17% since December 2020, per Bloomberg.

VIP+ Special Report: How Media Can Survive a Bear Market

Best of Variety

Sign up for Variety’s Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.

Click here to read the full article.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting