An ugly Friday for global equity led to a sharply lower start for Wall Street, as investors looked for a potential retest of crucial support on the price charts at the June lows.
The Dow Jones Industrial Average DJIA was down 390 points or 1.3%, trading below its June 17 closing low of 29,888, trading below the June 17 closing low of the Dow Jones Industrial Average. 78, leaving the blue-chip gauge not far off the threshold for entering a bear market. 72 would be a 20% drop from the DJIA's record close of 36,799. On January 4, 65 was set, which would meet the widely used definition of a bear market.
The potential for the more closely followed large-cap benchmark to take out its June 16 closing low at 3,666 is a big question, as it remains around the broader S&P 500 index SPX. Its June intraday low was just below 3,637, 67 or its June intraday low. The S&P 500 was down 65 points, or 1.7%, near 3,693, after ending Thursday at 3,757. It was 99, up 2.5% from June 16's closing low. The U.S. stock suffered steep losses on Wall Street when the market opened, as global equities fell sharply Friday. The Federal Reserve raised interest rate hike and signaled that it would drive rates higher than market participants had previously anticipated. A number of other global central banks have delivered rate increases this week, underlining investor worries about the economic outlook.