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You can see other videos from our team if you tap here. Try refreshing your browser, or Market is trying to find a bottom'': The stock market sell-off deepens as S&P 500, Nasdaq plunges 3% at 12: 08 p.m. The Dow Jones Industrial Average was down 836.46 points, or 2.56 per cent, at 31,818, according to the Dow Jones Industrial Average. The S&P 500 was down 125.35 points, or 3.07 per cent, at 3,963. The Nasdaq Composite was down 432.54 points, or 3.61 per cent, at 11,551. Canada's TSX was down 311.49 at 20,179. Target Corp's first-quarter profit halved and the company warned of a bigger margin hit on rising fuel and freight costs. Its shares fell 25.2 per cent and were on track for their worst day since the Black Monday crash on October 19, 1987.
The retailer s results came a day after Walmart Inc trimmed its profit forecast. The SPDR S&P Retail ETF declined 8.2 per cent. Consumer discretionary and technology stocks fell by 5.7 per cent and 3.5 per cent in the 11 major S&P sectors.
Rising inflation, the conflict in Ukraine, prolonged supply chain snarls, pandemic-related lockdowns in China and the possibility of aggressive policy tightening by central banks have weighed on the markets recently, stoking concerns about a global economic slowdown. Wells Fargo Investment Institute adjusted its economic expectations to make a mild U.S. recession its base case for the end of 2022 and early 2023 based on economic data. Federal Reserve Chair Jerome Powell said on Tuesday that the central bank of the U.S. will raise rates as high as needed to fight a surge in inflation.
In June and July, traders are pricing in 50 basis point interest rate hikes by the Fed. Zachary Hill, head of portfolio management at Horizon Investments, said that a portion of the market is focused on a potential growth slowdown.
The Fed is firmly committed to tightening financial conditions, and that means lower equity valuations and wider credit spreads. The S&P 500 has fallen 16.8 per cent so far in 2022, and the Nasdaq has fallen more than 26 per cent due to growth stocks. Lori Calvasina told Bloomberg TV that we are pricing in a growth scare. There is a lot of uncertainty in the market right now about whether or not the recession will come through or if it is going to be another near-death experience. Valuations of stocks measured by the forward price-to- earnings ratio have gone down in recent weeks and that has increased the appeal of shares for some investors. Brooke May, managing partner at Evans May Wealth said that the markets are going to be volatile until we have clarity on Fed.
At this point, valuations are starting to look attractive and while it could go lower, these are pretty fair valuations, so hopefully we're getting close to a bottom. How do you deal with a bear market?
Value stocks protect investors from the worst of the 2022 market storm.
David Rosenberg: Do you think there is a bear market for the recession? In the last session, a 3.5 per cent and 6.0 per cent of investors are holding cash at the highest level in the last two decades. After falling for six consecutive sessions, the Wall Street fear gauge, known as the CBOE volatility index, rose to 29.54 points. Declining issues outnumbered advancers for a 4.97 -- to- 1 ratio on the NYSE and a 3.07 -- to- 1 ratio on the Nasdaq.