- US stocks plunged on Monday, with the S&P 500 dipping below 4,000 for the first time since April 2021.
- The tech-heavy Nasdaq fell more than 4% and the stock market’s “fear gauge” surged.
- Stocks and bonds are undergoing a simultaneous correction for the first time in over 50 years.
The market’s sharp sell-off continued on Monday, with each of the three major indices ending lower to start the week. The S&P 500 fell below 4,000 for the first time since April 2021 and the tech-heavy Nasdaq lost more than 4%.
The index, the stock market’s so-called fear gauge, jumped to 34.66 on Monday.
The stock sell-off came even as the yield on the 10-year Treasury fell slightly to around 3.04% from 3.1% on Friday, as investors seek to escape the carnage in equities.
So far in 2022, there was nowhere to hide in the markets, as stocks, bonds and cryptos have all been crushed, and stocks and bonds are undergoing a simultaneous correction for the first time in over 50 years old.
“In my opinion, investors have become too pessimistic about the outlook for the US economy and stock market,” veteran stock bull Edward Yardeni told the Financial Times on Monday. “I can’t remember such a drop in stocks for a very long time.”
Here’s where the U.S. indices stood as the market closed at 4:00 p.m. Monday:
Morgan Stanley analysts said in a note Monday that retail traders have now lost all the money they made during the pandemic.
Twitter stock fell during Monday’s session. Short seller Hindenburg Research released a report saying the company’s implied price would be 37% lower in the absence of Elon Musk’s takeover bid. The Tesla chief, the analysts wrote, holds all the leverage in the deal, and it’s possible he will upgrade his offer.
On Wall Street, Goldman Sachs is set to stop working with most SPACs due to liability concerns amid tighter regulations in the space, Bloomberg reported. But the investment bank may change course if the SEC reduces its
On the commodity side, lumber prices fell to their lowest level of the year on Monday, as the highest mortgage rates in 13 years weighed on housing demand.
Overseas, the Chinese yuan hit an 18-month low against the dollar as Beijing’s Covid lockdowns drag the economy down and as US bond yields remain elevated.
Meanwhile, the three largest cryptocurrencies by
— bitcoin, ether and solana — all fell on Monday. Shares of Coinbase and Silvergate Capital fell on the massive token sale.
Oil fell, with West Texas Intermediate down 6.7% at $102.39 a barrel. Brent, the international benchmark, fell 6.4% to $105.20 a barrel.
Gold edged down 1.53% to 1,853.20 an ounce. The 10-year rate fell 8.4 basis points to 3.04%.
Bitcoin plunged 11.64% to $30,569.95.